Dáil Éireann Debate, Tuesday - 28 June 2016
166. Deputy Mary Lou McDonald asked the Minister for the Environment, Community and Local Government the recent changes in van tax which appear to have made it more expensive for van users, particularly those who are not self-employed. [18412/16]
View answerThere have been no changes to motor tax rates for commercial vehicles since the reductions announced in Budget 2016 and given legislative effect in the Motor Vehicle (Duties and Licences) Act 2015. The reductions applied to all vehicles with an unladen weight in excess of 4,000kgs, with no change to rates for smaller commercial vehicles.
To be taxed as a commercial vehicle, a vehicle must be constructed as a goods vehicle and must be used solely in the course of trade or business. Under section 2 of the Finance (Excise Duties) (Vehicles) Act 1952, if a vehicle is being used in a manner that would attract a higher rate of tax, the tax becomes payable at that rate. In other words, if a vehicle is also being used in a private capacity and the relevant private rate applying to the vehicle is higher than the goods rate, then the vehicle must be taxed at the private rate.
Licensing authorities have an obligation under Article 3 of the Road Vehicles (Registration and Licensing) (Amendment) Regulations 1992 to be satisfied that a vehicle is correctly taxed and it is thus open to a motor tax office to seek additional documentation supporting a claim for the commercial rate of motor tax. Such documentation may include a certificate of commercial insurance, evidence of registration for VAT or, at the discretion of the licensing authority concerned, any other appropriate documentation that would indicate that the applicant is in trade or business (including confirmation from an employer that a vehicle is being used by an employee solely in the course of trade or business). It is up to the individual concerned to provide whatever evidence is required by the local authority in order for it to be satisfied that the applicant is entitled to claim what is in effect a concessionary rate of tax.
