Dáil Éireann Debate, Wednesday - 15 February 2017
110. Deputy Richard Boyd Barrett asked the Minister for Finance if he will drop VRT on vehicles specially adapted for disability to assist ongoing access to public transport for those with disabilities and to financially assist taxi drivers looking to purchase such vehicles; and if he will make a statement on the matter. [7690/17]
Amharc ar fhreagraVRT is charged on the basis of vehicle type not vehicle use and, for VRT purposes, taxis and hackneys are taxed as passenger vehicles. I am not aware of any taxis or hackneys dedicated solely to servicing the transport needs of the disabled i.e. all such vehicles also accept fares from able-bodied passengers.
Any tax concessions for this group of vehicles would inevitably lead to pressure for the extension of the relief, on competitive grounds, to all taxis and hackneys and this would be impossible to control.
In this regard, it should be recognised that tax reliefs have proved at times to be a blunt, inflexible and expensive means of providing assistance and achieving policy aims which might be more effectively achieved through regulatory or direct expenditure means. VRT on vehicles helps to broaden the tax base and provides an important source of Exchequer revenue. I am regularly asked to introduce tax reliefs for one purpose or another, but to accede to all such requests would lead to an immediate narrowing of the tax base, therefore, I have no plans to reduce or eliminate VRT on taxis including those specially adapted for those with disabilities.
