Dáil Éireann debate -
Wednesday, 2 Feb 1994

Vol. 438 No. 2

Written Answers. - Vehicle Registration Tax.

Avril Doyle

Question:

54 Mrs. Doyle asked the Minister for Finance if he has satisfied himself with the lack of transparency involved in the present system of calculating vehicle road tax; the reason a person could be quoted £1,000 less VRT by the Tullamore office than the Custom House VRT office for the same car; the formula/format entered into the computer for arriving at the figure; the reason the equivalent of the Customs and Excise tariff book is no longer available to assist VRT calculations; and if he will make a statement on the matter.

Minister for Finance (Mr. B. Ahern)

With effect from 1 January 1993 the Revenue Commissioners have been given statutory responsibility for maintaining a register of all vehicles in the State and for collecting vehicle registration tax (VRT). The Finance Act, 1992, provides that the VRT charged in relation to a car shall be a percentage of its value and that the value shall be taken to be the open market selling price (OMSP) of the car at the time of the charging of the tax thereon.

In the case of new cars the OMSP is the price, inclusive of all taxes and duties, declared to the Revenue Commissioners by the manufacturers or sole distributor. In the case of second hand cars, being registered in the State for the first time, the OMSP is determined so as to ensure that the VRT chargeable on the vehicle will be equivalent to that residing in an equivalent model of the same age and condition already registered in the State. In determining this value the age, condition, mileage etc., are taken into account as are any enhancements or extras that may be fitted.

The Commissioners maintain a computer database or car models and prices based on the age and specification of the vehicle. To obtain the VRT payable specific details of the car are entered into the computer which will then calculate the OMSP and appropriate VRT payable. This computer database is used by all Vehicle Registration Offices thereby ensuring consistency in the calculation of VRT from office to office. The database is being constantly updated to take account of models not previously encountered, and to allow for the passage of time.

The VRT database is not available in hardcopy. Because of the size of the database, and the frequency of updates, it would not be practicable to produce a printed version. It should be noted that prior to the introduction of VRT there was no centralised database of secondhand car prices and the Customs Tariffs never contained such a listing.

While the Commissioners do not publish listings of car prices for VRT purposes they do operate a system whereby individuals can obtain an estimate of the VRT payable on a specific car in advance of registration. Persons availing of this service are advised that the VRT quoted is an estimate only, and that a definitive quote will only be given on production of the car at a Vehicle Registration Office for inspection and registration. It can happen in such cases that the original estimate will differ from the final quotation. Inquiries are frequently made by telephone, and while staff will try to establish as much detail as possible, the level of specifications is sometimes understated by the individual making the inquiry, or the specific model is incorrect. This can result in a lower estimate being given than is appropriate. This will become apparent when the car is inspected by staff at the Vehicle Registration Office.

The Commissioners are satisfied that the VRT collection system works efficiently and fairly. There is an appeal system in place and an individual who is dissatisfied with the VRT calculated for his car may ask to have his case reviewed. If the appeal is upheld any excess VRT paid will be refunded.

It is not possible to comment on the specific case mentioned by the Deputy as insufficient details are given to enable the case to be identified. If the Deputy wishes to give further details the Commissioners will be happy to make inquiries into the specific circumstances of the case.

Michael Noonan

Question:

55 Mr. Noonan (Limerick East) asked the Minister for Finance if a person (details supplied) in County Limerick who retired from the Civil Service on marriage in July 1985, could now successfully apply for re-entry to the service; if he will make a statement on the Government's attitude to the decision in the recent High Court case which seems to have conceded the principle underlining this type of application; and if he will make a statement on the matter.

Minister for Finance (Mr. B. Ahern)

Recruitment to the Civil Service is governed by very specific legislative provisions, as provided for by the Civil Service Commissioners Act, 1956. In general, recruitment is by way of open competition conducted by the Civil Service Commissioners.

An exceptional arrangement was provided for in section 11 of the Civil Service Regulation Act, 1956, as amended by the Civil Service (Employment of Married Women) Act, 1973. Under these provisions women who left the Civil Service for the purposes of, on or following marriage, could in certain circumstances seek reinstatement to their former positions if they fulfilled specific criteria. I am not aware of any High Court decision affecting the practice of reinstatements but, in a recent case taken by the Employment Equality Agency under the Employment Equality Act, 1977, the Labour Court determined that this practice is discriminatory and contrary to the principle of equal treatment. It has recommended that the relevant statutory provisions be repealed. Having taken legal advice on the matter, I do not consider that I have any option but to terminate the practice of reinstatement.