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Dáil Éireann debate -
Tuesday, 21 May 1996

Vol. 465 No. 6

Written Answers. - Taxation of Commercial Vehicles.

Noel Dempsey

Question:

103 Mr. Dempsey asked the Minister for Finance if he will review the relevant customs and excise laws and regulations to exempt vehicles being imported into this country, which are destined to be used as commercial vehicles, such as hackneys or taxis. [10359/96]

The Revenue Commissioners have indicated that a VRT concession of this nature in respect of taxis and hackneys could cost in the order of £20 million in revenue foregone. There would be difficulty with adequately monitoring or controlling the end use of vehicles used by taxis or hackneys. Relieving cars used by taxis and hackneys of VRT would also lead to pressure for a similar relief from VRT on vehicles used in other commercial activities such as driving schools.

On this basis, I could not agree to the exemption proposed.

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