Vol. 470 No. 2
98 Mr. Callely asked the Minister for Finance the consideration, if any, he has given to introducing vehicle registration tax and VAT refunds on motor vehicles used as public service vehicles; if such schemes are available in other EU countries; and if he will make a statement on the matter. [18692/96]
I have no plans to introduce refunds for VRT and VAT in respect of motor vehicles used as public service vehicles.
It has not been possible in the time available to asertain if the VRT refund scheme the Deputy has in mind applies in other member states.
As regards VAT, the treatment of this sector is governed by the EU Sixth VAT Directive, with which Irish VAT law must comply. Ireland has availed of a member state option to exempt passenger transport from VAT. This means that taxi and hackney operators do not charge VAT on the services they provide, but as a necessary corollary, they are not entitled to recover the VAT incurred on the goods and services they purchase. All other member states of the EU, with the exception of Denmark, treat these services as taxable and therefore the question of special refund schemes for VAT in those member states does not arise.
