Seymour Crawford (Cavan-Monaghan, Fine Gael)
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Question 113: To ask the Minister for Finance the reason there are two different rates of VAT regarding the breeding of horses; his views on same; and if he will make a statement on the matter. [21882/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am advised by the Revenue Commissioners that the rate of VAT on the supply of insemination services is 13.5%, regardless of the form of the service. The various rates mentioned to by the Deputy appear to refer to the different systems of VAT operating for farmers depending on whether they are registered for VAT or not. A farmer who is registered for VAT must charge VAT on the supply of all farm services, including insemination services, at the VAT rate appropriate to that service; which in this case is 13.5%.

Where a farmer is not registered for VAT he or she does not charge VAT on any farming services being supplied. However, where an unregistered farmer supplies any agricultural produce or service, including insemination, to a VAT-registered person, the farmer may add a flat-rate addition of 5.2% to the amount invoiced to the VAT-registered person. This flat-rate addition is designed to compensate the unregistered farmer for VAT suffered on his or her purchases.

John O'Mahony (Mayo, Fine Gael)
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Question 114: To ask the Minister for Finance his plans to suspend the carbon tax on petrol and diesel in view of the high oil prices and the increasing costs to motorists to purchase fuel; and if he will make a statement on the matter. [22120/10]

John O'Mahony (Mayo, Fine Gael)
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Question 116: To ask the Minister for Finance his plans to suspend the carbon tax on petrol and diesel in view of the high oil prices and the increasing costs to motorists; and if he will make a statement on the matter. [21352/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 114 and 116 together.

I announced in the Budget that a carbon tax at a rate of €15 per tonne is being introduced on fossil fuels. The tax was applied to petrol and auto-diesel with effect from midnight, 9 December 2009; and applied from 1 May 2010 to kerosene, marked gas oil (also known as 'green diesel' or 'agricultural diesel'), liquid petroleum gas (LPG), fuel oil and natural gas. The application of the tax to coal and commercial peat is subject to a Commencement Order. These Budget announcements are contained in Finance Act 2010 which has now been enacted. I have no plans to suspend the carbon tax.