Dáil Éireann debate -
Tuesday, 1 May 2001

Vol. 535 No. 1

Written Answers - Capital Allowances.

Nora Owen

Question:

422 Mrs. Owen asked the Minister for the Environment and Local Government if he has considered making arrangements to assist those taxi plate holders who purchased their plates in recent years and have no tax liability and therefore cannot avail of the capital allowances grants as outlined in the budget; and if his attention has been drawn to the hardship which has been caused particularly to a number of people who took early retirement or had redundancy money which they used to purchase a taxi plate and now find that they have endured great losses due to deregulation; and if he will make a statement on the matter. [12061/01]

Minister of State at the Department of the Environment and Local Government (Mr. Molloy)

The Finance Act, 2001, provides for a new scheme of capital allowance for expenditure incurred on the cost of taxi licences acquired on or before 21 November 2000. The allowances are effectively back dated with the cost being deemed to have been incurred on 21 November 1997 where the licence was purchased prior to that date. The actual cost of the licence can be written off over five years at the rate of 20% per annum in line with the new write-off period for capital allowances for plant and machinery. The write-off will only be allowed against the trading income of the licence owner who drives the taxi. However, if the same vehicle is rented out on a part-time basis, then the cost can be written off against both the trading income and the rental income from the vehicle in question. It is not proposed to provide for mitigation measures in relation to the introduction of the new taxi licensing regime beyond these provisions and the scheme of refunds by certain local authorities which has also been introduced in relation to licence fees charged at above the default level fixed in the Public Service Vehicle Regulations, 1995.