The objective of the Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme is to improve the quality of life of certain disabled persons, through enhancing their overall mobility in a manner consistent with not imposing an unreasonable burden on Exchequer resources. The scheme targets what are costly reliefs at those who are severely and permanently disabled with regard to physical mobility.
The current scheme had its origins in section 43 of the Finance Act, 1968 which introduced an exemption from the payment of road tax on vehicles specially adapted or constructed for and used by disabled persons who, in the main, would have been confined to wheelchairs.
The initial scheme was extended on a number of occasions and a new consolidated scheme of reliefs was provided for under section 92 of the Finance Act, 1989. That section enabled the Minister for Finance to make regulations providing for the refund on road tax, excise duty, later Vehicle Registration Tax, and VAT on the purchase of a vehicle used by certain disabled persons and for the repayment of the excise duty on petrol or diesel used in the vehicle. The resultant Disabled Drivers (Tax Concessions) Regulations, 1989 came into effect on 21 December 1989.