Vol. 505 No. 6
131 Mr. McGrath asked the Minister for Finance the reason VAT does not apply to feedstuffs for the horseracing industry; if it applies to feedstuffs for the greyhound racing industry; his views on whether the greyhound industry employs a significant number of people and generates economic activity; and if he will make a statement on the matter. [14454/99]
Under EU VAT law, with which Irish VAT law must comply, member states can retain the zero rates which were in place prior to 1 January 1991 but they are prohibited from introducing new ones. Animal feed which includes feed for horses, but excludes feeding stuff which is packaged, sold or otherwise designated for the use of dogs, cats, cage birds or domestic pets was zero rated prior to 1991 and therefore retains that VAT treatment.
Greyhound feed on the other hand was standard rated prior to 1991. To assist the industry, my predecessor availed of a provision in EU law which allows member states the option of introducing reduced rates for certain goods and services to reduce the rate of VAT on greyhound feed in the Finance Act, 1995. Since 1 July 1995, greyhound feed which is packaged, advertised or held out for sale solely as greyhound feed and which is supplied in units of not less than ten kilograms can benefit from the reduced rate of 12.5 per cent.
I am fully aware of the economic contribution made by the greyhound industry.
