Paul Connaughton (Galway East, Fine Gael)
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229. To ask the Minister for Finance if the adaptations to a vehicle under the disabled drivers and passengers scheme have to be 10% of the car price or if that has been discontinued; and if he will make a statement on the matter. [48295/14]

Michael Noonan (Limerick City, Fine Gael)
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Currently, the effect of Section 92(1)(a)(ii) of Finance Act 1989 is such that where a passenger with a disability purchases a vehicle and seeks the repayment or the remission of Vehicle Registration Tax and VAT as part of the Disabled Drivers and Passengers (Tax Concessions) Scheme the cost of the adaptation must consist of not less than 10% of the value of the vehicle excluding VAT and VRT.

However, as the Deputy will be aware, Section 61 of the Finance Bill 2014 amends Section 92 of the Finance Act 1989 to remove the 10% requirement.

Changes in technology have significantly reduced the cost of certain adaptations for vehicles, so that certain adaptations which may have been expensive in the past now fall below the 10% threshold. As a result the 10% adaptation limit has lost its efficacy and on that basis I made the decision to provide for its abolition in the Finance Bill 2014.

The removal of the 10% requirement will take effect immediately upon the enactment of the Finance Bill 2014.