8:13am UK, Tuesday May 10, 2005

The horse industry is about to be hit by a new stealth tax - on manure, a business pressure group has warned.

New laws by the Department for Environment, Food and Rural Affairs will mean that equestrian businesses which compost muck to use as fertiliser, will have to obtain a permit costing up to £500.

180 horse manure

Tax on horse muck

Andrew Mowlah, Head of Research at the Forum of Private Business says the move,which comes into force in July, will hit the smaller firms hardest.

He said "Yet again it appears the Government has failed to conduct a proper regulatory impact assessment and therefore small firms are going to be clobbered by this legislation.

"For small yards composting is a viable and much used alternative.

"Our members are telling us that this new tax is absurd and has come completely out of the blue.

"Manure has been spread for as long as land has been farmed, it is ludicrous now to suddenly slap a stealth tax on the industry."

Keith Sanders, Manager of the Northcote Heavy Horse centre, Lincolnshire said: "Who on earth thinks of taxing horse muck?

"It's an absolute farce. I'll be the first to take a lorry load of dung to Downing Street to make my point.

"This could cost me thousands and yet I have had no visit from a Government inspector asking how it will affect me."