The Government is committed to progressing a number of mitigating measures for certain taxi licence holders, including a proposed tax relief by way of capital allowances for the actual capital cost of the licence, and an administrative scheme to address high licensing fees paid to certain local authorities. My Department will issue instructions to licensing authorities on the latter measure very shortly.
As part of the Government's policy in introducing the new regime for taxi licences, it was announced that existing taxi owners as of 21 November 2000, would be able to write off the actual cost to them of these licences as a capital allowance. In this regard, the Finance Bill, 2001, preliminary list of measures announced on 26 January 2001 provides: a write off period of five years in line with the new write off period for capital allowances for plant and machinery; the commencement of the write-off period for taxi licences to be backdated for three years to 21 November 1997; that the write-off will be allowed against the trading income of the licence owner who drives a taxi and against both the trading and rental income only where one licensed vehicle driven by the licence owner is also rented out on a part-time basis.
The Minister for Finance has separately stated his willingness to consider hardship cases in the context of the Finance Bill provisions.