Dáil Éireann Debate, Tuesday - 9 November 2021
243. Deputy Éamon Ó Cuív asked the Minister for Finance if he plans to increase the ceilings of repayment of VRT and VAT on the purchase of vehicles for disabled persons with a primary medical certificate (details supplied) in view of the increase in VRT on vehicles recently and the increase in the price of vehicles and subsequently on the VAT element of the purchase of vehicles; and if he will make a statement on the matter. [54092/21]
View answerThe Disabled Drivers & Disabled Passengers Scheme provides relief from VRT and VAT on the purchase and use of an adapted car, as well as an exemption from motor tax and an annual fuel grant. Details of these reliefs and the grant in respect of fuel usage are available on the Revenue website at the following link: www.revenue.ie/en/importing-vehicles-duty-free-allowances/guide-to-vrt/reliefs-and-exemptions/scheme-for-persons-with-disabilities.aspx
The relief from Value Added Tax and Vehicle Registration Tax are generous in nature amounting to up to €10,000, €16,000 or €22,000, depending on the level of adaption required for the vehicle.
It should be noted that changes to the VRT charging table only impact cars with emissions above 110 g/km CO2. For bands 9-12, which represent most new car registrations, there is a modest rate increase of 1%. VRT is an emissions-based tax and therefore the amount of VRT incurred will vary across different vehicle makes and models. The new rates structure will result in increases for high emission vehicles, while lower emission vehicles continue to incur low rates of VRT.
Again, the amount of the remission or repayment of VAT and VRT is decided on the basis of the value and nature of the adaptions made to the vehicle. Accordingly, I have no plans to amend the reliefs at this time.
