Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

I move amendment No. 78:

In page 122, lines 28 to 32, to delete paragraph (a) and substitute the following:“(a) in paragraph (d)(ii) by substituting “a vehicle that, at all stages of manufacture, is classified as a category N1 vehicle with less than 4 seats and has, at any stage of manufacture,” for “a category N1 vehicle that, at the time of manufacture, has less than 4 seats and has”, and”.

The amendment as currently proposed in section 61 has an unintended consequence that certain vehicles will attract a rate of VRT of 13.3% of the open market selling price of the vehicle, rather than the intended flat rate of €200. The vehicles in question are those which have had modifications made to them post-construction which have added weight to the vehicle, such as armoured trucks, towing vehicles, and refrigerated trucks and vans. Therefore, the amendment proposes to change the wording of the relevant section - section 132(3)(d)(ii) of the Finance Act 1992 - to allow the Revenue Commissioners to decide that such vehicles meet the relevant weight criteria at any stage of manufacturing and therefore apply the lower rate of VRT. It is a concession that concerns all of those modified refrigerated vans on the road. Under the provision as originally drafted, they would be paying the higher 13.5% rate. This gives discretion to the Revenue Commissioners to apply the €200 rate to them.