Since 1997 the rate of excise duty on betting was reduced from 10% to 5% with effect from 1 July 1999 and reduced from 5% to 2% with effect from 1 May 2002. There have been periodic changes also to the VAT livestock rate, which applies to the supply of live horses.
Prior to the Finance Act 2003 there was no obligation on a taxpayer to make a return of exempt income or profits from the sale of services of mares by stallions. However, in the Finance Act 2003 this position was changed to ensure that income or profits, although exempt, are included in the annual return of income to the Revenue Commissioners. The new requirements apply in respect of chargeable periods commencing on or after 1 January 2004.
State support to the bloodstock sector falls under the direct remit of the Minister for Agriculture and Food while State support to the horse racing industry is a matter for the Minister for Arts, Sport and Tourism. The question of the position in relation to any particular issue with regard to direct State funding to these sectors is a matter in the first instance for the individual Minister concerned.