Dáil Éireann Debate, Tuesday - 17 November 2020
289. Deputy Aindrias Moynihan asked the Minister for Finance if consideration is being given to increase the VRT refund available to disabled drivers, given the recent increases in VRT in budget 2021; and if he will make a statement on the matter. [36696/20]
View answerFrom January 2021 a new vehicle registration tax (VRT) table is being introduced to: use the CO2 values from a new EU emissions test for passenger cars, known as “WLTP”; and strengthen the environmental rationale of the VRT regime in line with Government commitments to radically reduce emissions from road transport and to reform the VRT regime.
The existing 11 band table is replaced with a 20 band table with a revised rates structure. Whereas current VRT rates range from 14% to 36%, the new VRT table has a range from 7% to 37% resulting in significant reductions in VRT for Hybrids and other well performing cars.
The Disabled Driver and Disabled Passengers (Tax Concessions) Scheme provides for relief on VAT and VRT, based on how much the car has been adapted and whether the beneficiary is a driver or passenger, up to a maximum of
- Disabled drivers: €10,000
- Disabled passengers: €16,000
- Specifically adapted vehicles for drivers with severe disabilities: €16,000 (Specifically adapted vehicles are vehicles that need significant adaptations)
- Extensively adapted vehicles for drivers and passengers: €22,000 (Extensively adapted vehicles are vehicles that need adaptations that cost more than the open market selling price of the vehicle being adapted)
The scheme also provides for an exemption from motor tax and an annual fuel grant. The cost of the scheme in 2019, excluding motor tax, was €72m.
As the changes to VRT do not represent an increase in many cases and the refund reflects both VRT and VAT, I will not be amending the refund bands at this time.
