Victoria's laws on restricted dog breeds are not working and a ban against registering pit bulls should be removed, a parliamentary inquiry has found.

Restrictions on breeds considered more likely to attack, such as pit bulls, were introduced after the death of toddler Ayan Chol from a dog attack in 2011.

The restricted breed laws mean that pit bulls cannot be registered if they were not registered before 2011.

Local councils were given the power to identify, seize and euthanase unregistered pit bulls.

But the parliamentary committee found the laws were causing distress to owners and costing councils money.

A report tabled at State Parliament found there was no way to definitively identify a pit bull.

"The committee heard that distinguishing pit bulls from other breeds using visual identification is generally considered difficult or impossible," it said.

"DNA testing is not a viable alternative, as it is currently not able to make definitive identifications of dogs as pit bulls.

"There does not appear to be any clear way to conclusively identify dogs as pit bulls."

Majority of pit bull declarations overturned

The report found the Victorian Civil and Administrative Tribunal (VCAT) had overturned 74 per cent of declarations that dogs were pit bulls since 2011.

It also found there was not enough information on whether pit bulls were actually more dangerous than other breeds, and called for the ban on registering them to be overturned.

"The committee considers that allowing the registration of pit bulls would facilitate councils encouraging responsible ownership of these dogs," the report said.

"Allowing the registration of pit bulls would also mean that councils could no longer seize and euthanase them solely because of their breed.

"Euthanasia would remain an option for individual pit bulls (like any dog) that have actually committed aggressive acts."

The committee found pit bulls should continue to be muzzled in public and properly contained at home.

It said local councils should focus their resources on responsible dog ownership of all breeds, rather than focusing on restrictions on pit bulls alone.

The Victorian Government has six months to respond to the report.