Denis Foley
Ceist:20 Mr. Foley asked the Minister for Finance the plans, if any, he has to alter the VAT legislation to allow businesses to reclaim VAT paid on motor car purchases; and if so, the cost of such a change. [16736/96]
Written Answers. - VAT on Motor Vehicles.
I have no plans at present to alter current VAT law with regard to the deductibility of VAT on motor cars purchased for business purposes.
The position is that, under current legislation, VAT is deductable in relation to cars purchased for hire or leasing, as stock-in-trade and by driving schools for the purpose of driving instruction.
It is not possible to give the precise cost of extending deductibility to business cars generally. However, on the basis of the information available in relation to the purchase of motor cars in recent years, the Revenue Commissioners consider that such a measure would cost in the order of £50 million per annum.