David Stanton (Cork East, Fine Gael)
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Question 261: To ask the Minister for Finance if, in cases where VRT has been paid on commercial vehicles and where subsequently the owner wants to use the vehicle for ordinary passenger use, the original VRT paid is taken into account and deducted from the extra VRT that has to be paid in order to upgrade the vehicle to passenger use; and if he will make a statement on the matter. [38980/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am advised by the Revenue Commissioners that the original vehicle registration tax, VRT, paid is taken into account where a commercial vehicle which has been previously registered for VRT purposes in the State is converted in such a manner that the VRT classification changes from category B or C (commercial) to category A (passenger).

Section 132(5) of the Finance Act 1992 provides for the methodology to be used in the calculation of VRT liability in such instances. When the converted vehicle is presented to Revenue for assessment of the additional VRT due, the methodology allows for the residual VRT on the pre-converted vehicle to be calculated, based on the open market selling price on that day, of a similar second-hand commercial vehicle. This is then offset against the VRT due.