Patrick O'Donovan (Limerick, Fine Gael)
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Question 50: To ask the Minister for Finance if there are proposals within his Department to apply VAT in particular cases (details supplied); and if he will make a statement on the matter. [36418/11]

Michael Noonan (Limerick City, Fine Gael)
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Any changes to the VAT code will be determined in the context of the upcoming Budget. You will appreciate that it is not normal practice to comment on Budget matters in advance.

Pádraig Mac Lochlainn (Donegal North East, Sinn Fein)
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Question 51: To ask the Minister for Finance his plans to abolish or reduce vehicle registration tax applying to vehicles coming here from other EU countries; when legislation allowing for free movement of vehicles throughout Europe will be enacted; and if he will make a statement on the matter. [36449/11]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that Section 134 (1)(a) of the Finance Act 1992 provides that a vehicle may be registered without the payment of vehicle registration tax (VRT), if the vehicle is "the personal property of a private individual and is being brought permanently into the State by the individual when he is transferring his normal residence from a place outside the State to a place in the State." However, specific conditions are attached to the use of such a vehicle for a defined period after it is brought into the State. These conditions are detailed in Statutory Instrument No. 59 of 1993 (Vehicle Registration Tax (Permanent Reliefs) Regulations, 1993). Regulation 4(6) of these Regulations requires that the vehicle be used solely by the registered owner for a period of 12 months from the date of registration in the State. It provides that:

"A vehicle in respect of which the relief aforesaid has been granted shall not be sold or otherwise disposed of, hired out, lent or given as security in the State during the period of 12 months following its registration by the Commissioners..."

In addition, Section 134 of the Finance Act 1992 provides for permanent exemption from payment of VRT in a number of other, specific, cases.

Section 135 allows the temporary exemption from the payment of VRT where the vehicle is brought into the State by an individual established outside the State for such individual's private or business use. In this regard Irish legislation (SI 60 of 1993) allows the vehicle to remain in the State "for a period not exceeding 12 months" which is more generous than that allowed by EU directives, i.e. period not exceeding 185 days in any 12 month period.

It should be noted that Ireland is in compliance with EU directives on permanent and temporary exemptions from registration at this time. I have no plans at present to abolish or reduce vehicle registration tax applying to vehicles coming here from other EU countries.