Thursday, 22 March 2012
Finance Bill 2012 (Certified Money Bill): Committee and Remaining Stages
Michael Noonan (Minister, Department of Finance; Limerick City, Fine Gael)
The proposed administration charge of €500 is necessary to defray the costs of development and ongoing administration required for the efficient operation of the export refund scheme. The fee will enable development costs to be recouped as quickly as possible to minimise the burden on the taxpayer. In other countries, for example, Denmark, where a similar scheme exists, an administrative charge of 15% of the value of the vehicle is charged. The administration fee also protects the State from individuals who might use the export refund scheme for cash flow purposes.
On the commencement date for the scheme, it will not be possible to have a scheme up and running from 1 April 2012 as a significant amount of preparatory work is required within Revenue including the development of a new IT system. Procedural and operational changes will need to be addressed, not just within Revenue, but amongst other stakeholders such as the NCTS and the national driver and vehicle file in Shannon.