John Cregan (Limerick West, Fianna Fail)
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Question 267: To ask the Minister for Finance when the tax age allowance was first introduced; the rate of same when introduced; when it was last increased; the level to which it was increased; and if he will consider an increase in the allowance in budget 2006. [23987/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The age tax credit, then the age tax allowance, was introduced by the Finance Act 1974. This provided an additional income tax personal allowance for the 1974-75 tax year and subsequent years. On its introduction, the age allowance was, in the case of a married person, £50 or €63 and for a single or widowed person, £25 or €32. The age tax credit was last changed in budget 2002 when, in the context of the changeover to the euro, its value was increased slightly to €205 per annum for a single person aged 65 or over and to €410 per annum for a married couple where one spouse is or both spouses are aged 65 or over.

The question of a further increases in the value of the age tax credit will be a matter to be considered in the context of future budgets. However, I would point out to the Deputy that the approach adopted in recent years with regard to tax policy and the elderly has been to assist such persons primarily through increases in the age exemption limits under which those aged 65 or over are exempt from income tax up to specified limits.

Brian O'Shea (Waterford, Labour)
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Question 268: To ask the Minister for Finance his proposals to remove the 21% VAT rate which applies to a medication used to treat bees (details supplied); and if he will make a statement on the matter. [24005/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. The position is that the VAT rating of medicine of a kind used for animal oral consumption is generally subject to the zero rate of VAT. However, under EU law, the supply of non-oral animal medicine does not qualify for the zero rate. The veterinary medicine in question, Bayvarol, is not taken orally and its supply is, therefore, subject to VAT at the rate of 21%.

Under the EU sixth VAT directive, I am precluded from adding to the range of supplies subject to the zero rate of VAT.