Vol. 503 No. 4
113 Mr. Stanton asked the Minister for Finance the representations, if any, he has received to remove or reduce VAT and VRT from public hire vehicles such as taxis; the decision, if any, he has made following any such representations; and if he will make a statement on the matter. [10381/99]
I have received a number of representations regarding the removal of vehicle registration tax, from wheelchair accessible taxis. The matter has been considered on a number of occasions but the cost to the Exchequer of such a scheme could be substantial.
As regards VAT, all motor vehicles, including taxis, are taxable at the standard rate. EU VAT law, with which Irish VAT law must comply, rules out the application of a reduced rate or a zero rate for taxis.
I understand that Dublin Corporation intends to issue a total of 820 wheelchair accessible tax licences between now and the year 2001. Advertisements for the first 350 licences were placed in the papers last month and I have been informed that the number of applications has outstripped the numbers advertised. The application of VRT has not been a hindering factor.
In the circumstances I have no plans to exempt wheelchair accessible taxis from the payment of VAT or VRT.
