Europe likely to accept stallion tax exemption phase-out

THE European Commission is unlikely to raise any serious objections to the Government’s plans to give a further two-and-a-half year reprieve to the stallion tax exemption.

Finance Minister Brian Cowen announced in his December 7 Budget that he was ending the controversial exemption - in place since 1969 - following a ruling from the EU Agriculture Commission that it was an illegal state aid and should be abolished.

But the minister gave stallion and stud owners what was described as a “soft landing” by allowing the scheme to continue until July 31, 2008.