Joe McHugh (Donegal North East, Fine Gael)
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Question 254: To ask the Minister for the Environment, Heritage and Local Government if a farmer with a herd number has a van, crew cab or a commercial jeep, does that individual qualify for the €288 tax; if so, the proof needed; must the farmer pay private tax on a vehicle that they and their spouse use for all trips and if so can they then put back seats in their commercial vehicle if they are paying the high tax bracket; is a VAT number needed if the farmer has a herd number; when this rule will be operational; and if he will make a statement on the matter. [42166/10]

John Gormley (Dublin South East, Green Party)
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The law in relation to the taxation of goods vehicles has not changed.

To be taxed as a goods vehicle, a vehicle must be constructed or adapted for that purpose and used solely in the course of trade or business, including agriculture. If a vehicle is adapted, it must have the same characteristics as a goods vehicle in relation to space and accommodation for carrying goods and it must have limited seating capacity. In effect, this means that in order to be taxed in the goods category, the goods-carrying area of the vehicle must be greater than the seating area; all seats to the rear of the driver's seat must be removed and seat bolt holes welded over and all rear seat belts must be removed and seat belt anchor points welded over. There are no such restrictions if a vehicle is taxed privately.

Under Article 3 of the Road Vehicles (Registration and Licensing) (Amendment) Regulations 1992, a licensing authority must be satisfied that a vehicle is correctly taxed, and it is thus open to a motor tax office to seek additional documentation supporting a claim for the goods rate of motor tax. Such documentation may include a certificate of commercial insurance or evidence of registration for VAT purposes, or, at the discretion of the licensing authority concerned, any other appropriate document.

Under section 2 of the Finance (Excise Duties) (Vehicles) Act 1952, if a vehicle is used in a condition or manner which would attract motor tax at a higher rate, tax then becomes payable at that rate. In other words, if a goods vehicle is used in a private capacity, it must, like all other private vehicles, be taxed at the private rate of motor tax.

Application of the law in particular cases is a matter for the motor tax authorities.