Dáil Éireann díospóireacht -
Tuesday, 18 Oct 1994

Vol. 445 No. 9

Written Answers. - Vehicular Taxes.

Richard Bruton

Ceist:

135 Mr. R. Bruton asked the Minister for Finance if his attention has been drawn to the substantial taxes imposed on lighter three-seat works vehicles which have had crew cabs attached compared to heavier works vehicles with a larger initial seating capacity which create a cost differential in favour of the heavier vehicles in spite of the fact that it is official policy, particularly in Dublin city, to promote the use of lighter vehicles within a three tonne limit; and if he will make a statement on the matter. [1318/94]

Minister for Finance (Mr. B. Ahern)

Crew cab vehicles which are of not more than three tonnes unladen weight and which, to the rear of the driver's seat, have a roofed area in which one or more seats have been fitted are classified as Category A vehicles for VRT purposes. Such vehicles are chargeable at the rate of 23.2 per cent of the value of the vehicle, if the engine capacity is 2,500ccs or less, and at the rate of 29.25 per cent of the value of the vehicle if the engine capacity exceeds 2,500ccs. Vehicles with crew cabs which are over three tonnes unladen weight are chargeable to VRT at the standard commercial vehicles rate of £40. The smaller vehicles are used mainly for the purpose of the carriage of passengers with some equipment, while the larger category is used mainly for the carriage of heavy goods and equipment. The three tonne limit is considered to be a reasonable threshold for distinguishing between the two types of vehicles given their essentially different functions. Nevertheless, I will examine the point made by the Deputy when next reviewing the VRT regime.