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Disabled Drivers Grants

Dáil Éireann Debate, Wednesday - 16 January 2013

Wednesday, 16 January 2013

Questions (219)

Joan Collins

Question:

219. Deputy Joan Collins asked the Minister for Finance if the tax relief for disabled drivers and disabled passengers scheme is planned on being increased from the current figure of €15,875 in line with the increase in purchase costs, conversion costs and maintenance costs (details supplied) and if he will confirm that the tax relief is over two years and will remain so. [1963/13]

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Written answers

I am informed by the Revenue Commissioners that Section 134(3) of the Finance Act 1992 (as amended) and Statutory Instrument No. 353 of 1994 (Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations, 1994) (as amended) provide for permanent relief from the payment of specified maximum amounts of VAT and VRT for persons registered under the scheme. The legislation specifies that, where a person satisfies the Revenue Commissioners that s/he is a Disabled Driver who complies with all the conditions of the Disabled Drivers Scheme, that person shall be entitled to relief in respect of a vehicle with an engine capacity of up to but not greater than 2,000 c.c.

The legislation also specifies that relief will be granted in respect of Value Added Tax (VAT), Vehicle Registration Tax (VRT) or residual VRT borne in respect of a vehicle, or in respect of the adaptation of a vehicle, subject to the limit specified in Regulation 9 (Driver) or Regulation 11 (Passenger). There is no restriction on the extent of the adaptations but relief is subject to the specified limits. The specified limit in respect of a disabled driver is € 9,525 and in respect of disabled passenger is €15,875.

Disabled drivers purchasing second-hand vehicles may participate in this scheme provided they comply with all the conditions of the Disabled Drivers Scheme as outlined. Regarding VRT, the legislation specifies that the claimant must have borne the residual vehicle registration tax. In the case of the purchase of a second-hand vehicle, if there is no vehicle registration tax on the second-hand vehicle because it was either remitted or repaid when purchased as new, then there is no residual vehicle registration tax to be borne by anyone on a subsequent purchase and hence there is no amount available for refund.

An individual who qualifies under the scheme has to retain the vehicle for 2 years before it can be replaced under the Scheme.

The legislation does not provide for any exceptions and the provisions of SI 353/1994 must be fully adhered to. I have no plans to increase the relief available.

Some 13,000 people benefited under the scheme in 2011 at an overall estimated cost of €51 million. Given the scale and scope of the scheme, any possible changes can only be made after careful consideration and with regard to the existing and prospective cost of the scheme and the available resources.

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