Dáil Éireann díospóireacht -
Wednesday, 23 May 1934

Vol. 52 No. 12

In Committee on Finance. - Additional Financial Resolutions. Resolution No. 1—Excise.

Minister for Finance (Mr. MacEntee)

I beg to move:—

(1) That the Third Schedule to the Finance Act, 1926 (No. 35 of 1926), shall be amended as on and from the 1st day of July, 1934, as follows, and Section 20 of that Act and the said Third Schedule shall have effect accordingly, that is to say:—

By the deletion from paragraph 6 (as amended by subsequent enactments) of the said Third Schedule of the third proviso to that paragraph and the insertion in the said paragraph of the following proviso in lieu of the said proviso so deleted, that is to say:—

"In the case of any vehicle to which this paragraph applies and which exceeds ten horse power and is fitted with a taximeter and is lawfully used as a small public service vehicle within the meaning of the Road Traffic Act, 1933 (No. 11 of 1933), or for purposes incidental to such user and for no other purpose, no duty shall be charged or levied in respect of the excess of the horse-power above ten horse-power."

(2) That where a licence under Section 13 of the Finance Act, 1920, was taken out before the passing of this Resolution in respect of a vehicle which would be entitled to the relief afforded by the amendment mentioned in the foregoing paragraph of this Resolution and either such licence is in force on the 30th day of June, 1934, and does not expire until after that date or such licence is for a period commencing on or after the 1st day of July, 1934, the amount by which the duty paid under the said Section 13 in respect of such vehicle on the taking out of such licence exceeds the duty chargeable having regard to the relief afforded by the said amendment in respect of such vehicle for the period for which such licence was taken out shall be repaid to the person by whom such licence was taken out.

(3) It is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1927 (No. 7 of 1927).

This Resolution provides for two things, first of all, a reduction of the duty on taxi-cabs from a net amount of £12 per annum, payable in certain circumstances, to £10 per annum, and, secondly, it dispenses with the procedure whereby formerly the owners of taxi-cabs had to pay duty at the full rate of £20, and, at the end of a period, to secure a rebate of £8 so as to reduce their net liability to £12.

Mr. Cosgrave

Is the arrangement confined to owners of taxi-cabs?

Mr. MacEntee

Yes.

Mr. Cosgrave

Other persons have to pay in full and then look for a rebate.

Mr. MacEntee

Under the Act of 1926 taxi drivers were compelled to pay the full tax, subject to a maximum of £20, and they were then entitled to recover the excess over £12 net at the end of the licensing period, if it could be shown that their cabs had been registered as such throughout the licensing period and had not been used in any other category. Under the Road Traffic Act of 1933 we are now able to exercise such control and supervision over taxi-cabs that we are satisfied they will not be used for any other purpose than that for which they were originally licensed.

Mr. Cosgrave

Some delay is certainly obviated by this proposal, but there are delays in connection with other cases in which a reduction is made subsequently, but it has to be claimed. A person pays the full duty and then applies for a rebate. Perhaps a week, two weeks, a month or two months pass by before the money is refunded. In those cases there is delay. The money is no use to the State and the owner is out of it for a considerable time. The Minister should consider the matter because to imposes extra work on people and is of no advantage.

Mr. MacEntee

Perhaps the Deputy would give me an instance of the sort of case he has in mind. This is primarily a matter for the Minister for Local Government, who is concerned with the Road Fund.

Mr. Cosgrave

The Minister for Local Government must understand that, if a car is of a certain age, as the law stands the full tax is paid on it; then, by reason of the engine having been in use for a number of years, a rebate is applied for and is granted in most cases. I heard of one case where it was granted at once. In other cases a request was made to have the car examined. It was examined, and after two months the rebate was made. My case is that, first of all, the citizen is out of his money, even though it is only £5 or £10; and, in the second place, there is the matter of the filling up of a number of forms, the going through a number of hands, and wasting time generally, and eventually giving the rebate.

Mr. MacEntee

I understand that the Deputy is concerned with secondhand cars.

Mr. Cosgrave

No; I am referring to cars that have been in use for a prolonged period.

Mr. MacEntee

In that case I am doubtful as to whether the concession ought to be continued at all or not. However, if there is any other case that the Deputy can make, I will ask the Minister for Local Government and Public Health to look into that matter and see what can be done. My own view, however, is that that particular concession should be discontinued.

Mr. Cosgrave

I am simply pointing out that this is a costly proceeding both to the State and to the citizens.

Minister for Defence (Mr. Aiken)

Who started it?

Mr. Cosgrave

A concession was given in the first instance. The best Administration is not always the first Administration.

Deputies

Hear, hear.

Mr. Cosgrave

It can be improved.

Deputies

Hear, hear.

Mr. Cosgrave

My point is that one takes steps to ensure that there is no abuse, or that when abuses take place they should be corrected. Why not lessen the administrative costs?

Mr. Morrissey

I do not know whether or not I would be in order in asking whether or not the Minister is prepared to concede certain things to the owners and drivers of ordinary hackney motor cars and cabs. I think it will be admitted that they have had a very lean time for the past few years, and that they have had to bear many burdens which they were not able to bear. Could the Minister not give some relief to the owners and drivers of ordinary hackney cars which are not registered as taxicabs?

Mr. MacEntee

I do not want to widen the extent of this debate too much, but I should like to see the case for the owners and drivers of hackney cabs proven.

Mr. Morrissey

I am only suggesting that the Minister might consider it.

Resolution agreed to.