Green Party welcomes moves to scrap stallion tax break
Pressure from Brussels looks set to force the Government to abolish the perk in the December Budget, the Irish Examiner revealed yesterday.
Green finance spokesman Dan Boyle branded the tax break an illegal state aid and demanded its scrapping as soon as possible.
He criticised Fianna Fáil’s attempts to fight the EU ban as he insisted the perk was a blatant breach of EU competition rules that gave unnecessary protection to a “privileged” industry.
He called on Ministers to use the enforced change to usher in other tax reforms for areas such as the building industry as well.
“The Government’s long overdue review of other tax reliefs, particularly those relating to the building industry, is prolonging a raft of blatantly unnecessary supports.
“Will the Government now drag its heels once again and wait for further European Commission competition rule decisions before it is legally bound to introducing a fairer tax system?” he said.
The Government is finally expected to cave-in to pressure from Brussels over the stallion tax exemption after failing to persuade the EU that it was a legitimate state aid.
The tax break was introduced by Charles Haughey in 1969 and its expected classification as an illegal boost for the bloodstock industry may result in the Government being levied millions of euros in compensation.
Manager of the Irish Thoroughbred Breeders’ Association Niamh O’Sullivan insisted the exemption was good for the Irish economy and not unfair.
“It has been estimated to be worth about €3 million a year. Compare that to the €330 million gross that the breeding sector contributes to the Irish economy.
“It is so important to us because we are in a very competitive industry and have to compete with bigger countries like America, Japan and Australia.
“French breeders get premiums worth around €50 million a year - every country has its own system.
“It was brought in to reward risk taking and create an atmosphere of investment. That is still needed,” she said.
