Mr. Niall Cody:

Again, there is a historical reason for the treatment of taxi drivers for VAT purposes. They are exempt from VAT. They do not charge VAT and are not entitled to deduct any. I will check the correct position for the Deputy but from my VAT knowledge, in respect of the changes taking place in industries, licences are generally regarded as a service for VAT purposes and are liable to 23% VAT. The supplier of a licence to do something would normally have to charge VAT to his or her customer. In most businesses, that is deductible because that business would pay VAT as well. An exempt business is not able to deduct that VAT and it would become a cost. I can look into the arrangements but from my historical knowledge of VAT, that has a ring of truth over it.