Paul Connaughton (Galway East, Fine Gael)
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Question 120: To ask the Minister for Finance if there has been a change in the repayment of vehicle registration tax on vehicles adapted for disabled persons; the number of VRT rebates refused on an annual basis because the VRT was already repaid; and if he will make a statement on the matter. [33271/11]

Michael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners that Section 134(3) of the Finance Act 1992 (as amended) and Statutory Instrument No. 353 of 1994 (Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations, 1994) (as amended) provide for permanent relief from the payment of specified maximum amounts of VAT and VRT for persons registered under the scheme. An individual who qualifies under the scheme may obtain relief as a driver or a passenger in respect of VRT and VAT subject to a maximum of:

* €9,525 for a driver

* €15,875 for a passenger.

This relief (comprising of both VAT and VRT) is available on the registration of a vehicle in the State where such vehicle has been constructed or adapted for use by the person with a qualifying disability and has an engine size of less than 2,000cc in the case of a driver and 4,000cc in the case of a passenger. Additionally, in the case of a qualifying passenger, the cost of the modifications must amount to at least 10% of the tax free cost of the vehicle. The legislation further provides that the relief is paid where the qualifying person or organisation satisfies the Revenue Commissioners that that person or organisation has borne or paid value-added tax, vehicle registration tax or residual vehicle registration tax in respect of a vehicle or in respect of the adaptation of a vehicle.

It has come to the attention of the Commissioners that occasions have arisen where relief of the residual registration tax was allowed to qualifying individuals on the purchase of used vehicles in the State where no VRT was paid in the first instance e.g. on the purchase of a used vehicle by a qualifying individual where the relief was allowed to an earlier owner of the vehicle who had previously qualified for the relief. Consequently, procedures are being put in place to ensure that relief for the payment of VRT and VAT will only be allowed to qualifying persons or organisations in situations where the person or organisation has borne or paid value-added tax, vehicle registration tax or residual vehicle registration tax in respect of a vehicle or in respect of the adaptation of a vehicle. To date no claim has been refused in instances where the VRT was already repaid.