Richard Bruton (Dublin North Central, Fine Gael)
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Question 334: To ask the Minister for Finance if concessions apply to the stamp duty clawback on first-time buyers who obtained stamp duty relief on a house, where for example they were forced to move for work or family reasons. [10600/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Stamp Duties Consolidation Act 1999 provides for three stamp duty reliefs in respect of the acquisition of dwelling houses and apartments. They are as follows: section 91A — new dwelling house with floor area compliance certificate; section 92 — new dwelling house with no floor area compliance certificate; and section 92B — first-time purchaser relief.

Since these reliefs are claimed and given at the time of stamping of the legal instrument concerned, the instrument is required to include a statement that certifies, inter alia, that for a period ending five years after the date of execution or, if earlier, the date of sale-on, the dwelling house will be occupied as the only or principal place of residence of the purchaser, or of a person in right of the purchaser; and that no rent will be received for the use of the dwelling house other than under the rent a room scheme by the occupier of the dwelling house. Each section also contains a provision that imposes a penalty — effectively a claw back of the relief — should rent for use of the house, other than under the rent a room scheme, be received in the five-year period. There is no concession in relation to the clawback where a person moves for work or family reasons.

Richard Bruton (Dublin North Central, Fine Gael)
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Question 335: To ask the Minister for Finance his views on excluding the public service obligation within electricity bills from VAT to avoid double taxation. [10602/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I should explain that the public service obligation, PSO, levy is a charge shown separately on bills issued by the Electricity Supply Board, ESB, to its customers since March 2003. The PSO levy is based on the costs incurred by the ESB in meeting its obligations to produce, or buy, electricity that is generated from peat and other environmentally sustainable forms of energy. It was previously included as part of the standing charges shown on ESB bills.

The PSO levy is part of the price which customers pay the ESB and is directly linked to the price of the electricity supplied. In these circumstances, the ESB is obliged to charge VAT on the levy. The rate at which VAT must be charged is 13.5%, which is the VAT rate that applies to the supply of electricity.

In relation to the issue of whether applying VAT to the PSO levy is appropriate, the position is that the VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. The method through which VAT must be calculated has been transposed under section 10 of the Value-Added Tax Act 1972, as amended, on the following basis: "...the total consideration which the person supplying goods or services becomes entitled to receive in respect of or in relation to such supply of goods or services, including all taxes, commissions, costs and charges whatsoever, but not including value-added tax chargeable in respect of the supply". The PSO levy on ESB bills is therefore legally subject to VAT.

Tony Gregory (Dublin Central, Independent)
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Question 336: To ask the Minister for Finance if vehicle registration tax is paid on quad bikes and mini scramblers as mechanically propelled vehicles; and if not, the steps that will be taken to have these vehicles registered. [10650/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am advised by the Revenue Commissioners that quad bikes and mini scramblers are required to be registered for vehicle registration tax, VRT, purposes under section 130 of the Finance Act 1992. Under this Act, quad bikes and mini scramblers are classified as category M for VRT purposes, attracting a rate of €2 per cubic centimetre, cc, for the first 350cc of their engine capacity and €1 per cc thereafter.