Question:
391 Dr. Upton asked the Minister for the Environment and Local Government the steps he will take to help families who are in financial difficulty following the deregulation of the taxi industry. [24273/01]
Written Answers. - Taxi Regulations.
Following the making of regulations in November 2000 providing for the liberalisation of availability of taxi licences, I arranged for the introduction of a scheme of refunds by certain local authorities in relation to licence fees charged at above the default level fixed in the Public Service Vehicle Regulations, 1995.
Additional mitigating measures were included in the Finance Act, 2001, which provides for a new scheme of capital allowances for expenditure incurred on the cost of taxi licences acquired on or before 21 November 2000. The allowances are effectively backdated 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 be allowed against the trading income only of the licence owner who drives the taxi. However, if additionally 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.
The Act also includes provisions targeted at addressing some hardship cases that had been brought to the attention of the Minister for Finance. Specifically, it provides that where a licence is inherited from a deceased spouse who carried on a taxi trade, the licence holder may offset the capital expenditure incurred on the original acquisition of the licence against the rental income alone from the licence, even if there is no trading income from the licence. Where inheritance tax or probate tax was paid in respect of a taxi licence, the value used for such tax purposes may be used instead of the actual capital expenditure cost, if that value is higher. The capital allowance scheme also caters specifically for the situation where a widow or widower, who has inherited the licence from his or her spouse, lets the licence to a third party who provides the associated vehicle.