Charlie O'Connor (Dublin South West, Fianna Fail)
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Question 305: To ask the Minister for Finance the cost to the Exchequer of abolishing stamp duty for first time buyers on homes up to €400,000; and if he will make a statement on the matter. [22179/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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All owner-occupiers are generally exempt from stamp duty on new houses where the property is 125 square metres or less. As the Deputy will be aware, the 2005 budget introduced a stamp duty relieving measure for first-time house purchasers who are owner-occupiers of second-hand houses by increasing the stamp duty exemption threshold for such purchasers from €190,500 to €317,500 and by reducing rates for house values up to €635,000.

I am informed by the Revenue Commissioners that the estimated cost of abolishing stamp duty for first-time buyers who are owner-occupiers of residential property up to €400,000 is approximately €14 million in a full year.

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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Question 306: To ask the Minister for Finance the cost to the Exchequer of doubling the VAT threshold for small businesses in 2005; and if he will make a statement on the matter. [22181/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Traders making supplies in the State are obliged to register for VAT where certain turnover thresholds are exceeded or are likely to be exceeded in any continuous period of 12 months. The current thresholds which were enacted by the Finance Act 1994 with effect from 1 July 1994 are: €25,500 in the case of a person supplying services — this threshold also applies to persons supplying a combination of goods and services or goods chargeable at the 13.5% or 21% VAT rates which are produced from zero-rated materials; and €51,000 for persons supplying goods. Businesses with turnover below these thresholds can register for VAT and those in the service sector in particular frequently choose to do so for business reasons.

As regards the estimated cost of doubling the current thresholds, the position is that under the EU Sixth VAT Directive with which Irish VAT law must comply member states may only increase thresholds in line with inflation. However, if thresholds were increased in line with the consumer price index since 1994, the €25,500 threshold would need to be increased to €34,910 and the €51,000 threshold would need to be increased to €69,819. The costs involved would be €19 million and €45 million respectively, amounting to a total cost of €64 million in a full year.

It is not customary for me to comment on any possible changes to thresholds which may or may not arise in the context of the forthcoming budget.

Gay Mitchell (Dublin South Central, Fine Gael)
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Question 307: To ask the Minister for Finance if motor vehicle forms RF100 and VRT4, Rev 6, will be synchronised; if carbonised versions will be made available to motor dealers; and if he will make a statement on the matter. [22238/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am advised by the Revenue Commissioners that the VRT4, Rev 6, form is a declaration for first registration of a used vehicle and the RF100 form is an application to the motor tax authorities — local authorities — for first licensing of a used vehicle. Prior to March 2005, the VRT4 and the RF100 were printed as one carbonised set, with the VRT4 the top page and the RF100 the bottom page. The information applicable to both documents copied through from the VRT4 to the RF100. Changes made to the RF100 form by the Department of the Environment, Heritage and Local Government, requesting additional information, led to the misalignment of the two forms and made the existing carbonised document obsolete.

The Revenue Commissioners are actively engaging with the Department of the Environment, Heritage and Local Government with a view to synchronising the data and producing a carbonised version of the revised forms. This form would then be made available to motor dealers.