Dáil Éireann debate -
Tuesday, 30 May 2000

Vol. 520 No. 1

Written Answers. - Tax Reliefs.

Noel Ahern

Question:

169 Mr. N. Ahern asked the Minister for Finance if he will clarify the regulations in relation to VAT/VRT on ambulances operated by charitable organisations for example Order of Malta and the Red Cross Society; the reason vehicles become liable when a stretcher is installed; if his attention has been drawn to the fact that such groups do a variety or works and use the vehicles as disabled person carriers and for accident and emergency training and cover; if he will have examinations made into the matter and make appropriate alterations in the interpretation and implementation of the rules. [15103/00]

Minister for Finance (Mr. McCreevy)

An ‘ambulance' is defined, in primary legislation, for vehicle registration tax, VRT, purposes, as a vehicle which has been specifically designed, constructed or adapted for the conveyance of injured or seriously ill persons to a hospital on a stretcher and which is permanently fitted to accommodate and hold in position one or more standard stretchers. Vehicles coming within this definition are classified as category D and while they are exempt from VRT, they are liable to VAT at the standard rate of 21%.

For the purposes of the Disabled Drivers' and Disabled Passengers' (Tax Concessions) Regulations 1994, a qualifying organisation is one which is recognised by the Revenue Commissioners as being chiefly engaged, in a volun tary capacity and on a non-commercial basis, in the care and transport of severely and permanently disabled persons. Such organisations are eligible for relief from tax, including VAT and VRT, in respect of vehicles which have been specially constructed or adapted for the transport of disabled persons.

I am informed by the Revenue Commissioners that certain branches of the Order of Malta have been recognised as qualifying organisations for the purposes of the regulations and that tax relief has been granted in respect of six qualifying vehicles to date. Relief was refused in respect of two vehicles, in one case because the vehicle was fully funded by the Eastern Health Board, and in the other case, because the vehicle was an ambulance, as defined, and therefore excluded from relief under the Disabled Drivers' and Disabled Passengers', (Tax Concessions) Scheme. I am also advised that no applications for relief have been received from the Red Cross Society. However, it would appear that the society could not be regarded as being chiefly engaged in the care and transport of severely and permanently disabled persons.

As I have informed the House on a number of occasions, the Disabled Drivers' and Disabled Passengers', (Tax Concessions) Scheme is currently being reviewed by an interdepartmental group under the chair of an official from the Department of Justice, Equality and Law Reform. Review of the tax relief granted to organisations such as those mentioned by the Deputy, is included in the remit of the group.