Vol. 456 No. 1
103 Miss Harney asked the Minister for Finance the reason it was considered necessary to require the expenditure by drivers of 20 per cent of the value of a car before they are eligible to apply for a free tax disc and fuel vouchers when converting the car to accommodate a person in a wheelchair. [13501/95]
I assume that the Deputy is referring to the benefits arising for qualifying disabled passengers under the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations, 1994.
The Regulations govern the various motoring tax reliefs available to qualifying disabled drivers and passengers. Drivers or passengers who qualify on medical grounds and satisfy the other non-medical criteria associated with the scheme, are entitled to significant tax concessions on acquisition and necessary adaptation of a vehicle for their use. The scheme focuses on those disabled persons whose physical disabilities cause them severe mobility problems.
In order to qualify for the benefits arising under the scheme, including the free tax disc and repayment of excise duty on fuel, all vehicles must be specially constructed or adapted; in the case of the qualifying disabled passengers, the Regulations require that the VAT free cost of the vehicle adaptations must amount to at least 20 per cent of the pre-tax cost of the vehicle.
I don't regard it as unreasonable to require a certain level of vehicle adaptation as a qualifying criteria for the scheme. The tax concessions obtainable for qualifying individuals are substantial, full remission or repayment of VAT and Vehicle Registration Tax (VRT) up to a maximum of £12,500, relief from excise duty on fuel up to 600 gallons per annum and free car tax. I am sensitive to the needs of the disabled community but given limited tax resources it will always be necessary to include criteria in the scheme to ensure that the benefit goes to those most in need. I might add that the adaptation requirement was reduced from 30 per cent to its current level in the Finance Act, 1991.
