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Zero GST Rating For Dead Horses

GST changes announced today recognise the fact that dead horses cannot be exported, or simply replaced from a warehouse shelf.

Prime Minister Helen Clark and Racing Minister Annette King today applauded the commonsense change, and said it would remove an anomaly that had annoyed the thoroughbred breeding industry.

The change was one of a number announced by Revenue Minister Michael Cullen today. Legislation to bring them into effect will be introduced in Parliament next month.

Mrs King said that under the existing GST rules, breeders could have to pay GST on a horse that died after sale and before it could be exported.

"That is clearly not reasonable, and that is why the change is being made. The death of a horse before export is not likely to be a matter over which the original vendor has any control, and therefore GST on the sale price should not have to be paid."

ends

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