Written answers

Wednesday, 13 May 2015

Department of Finance

Vehicle Registration

Photo of Pearse DohertyPearse Doherty (Donegal South West, Sinn Fein)
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78. To ask the Minister for Finance the reason the vehicle registration tax export repayment scheme charges eligible citizens €500 administration, deducted from repayable vehicle registration tax, when exporting a car; the amount of revenue this charge raised in 2014; and if he will make a statement on the matter. [18832/15]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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As the Deputy is aware, section 135D(4)(b) of the Finance Act 1992 currently provides that an administration charge of €500 is deducted from the amount of Vehicle Registration Tax (VRT) refunded upon the export of a passenger motor car under the VRT Export Repayment Scheme.

The VRT Export Repayment Scheme was introduced in the Finance Act 2012 to provide for a repayment of VRT upon the export of passenger motor car from the State. Up until the introduction of this Scheme individuals exporting vehicles had no way of recouping the residual VRT contained in the vehicle. An administration charge of €500 was initially necessary in order to recoup the significant investment necessary in setting up the technological platforms for operating the refund scheme and the interface with the third party to which the export examinations have been outsourced.

However, now that the necessary systems are in place and the scheme is operating effectively, I believe that there is an opportunity to reconsider the level of the charge with a view to a reduction in the context of this year's Finance Bill process. I will instruct my officials to examine the level at which the administration charge is set. Any new rate at which the administration charge may be set must continue to reflect the significant ongoing administrative and enforcement costs of the Scheme.

The administrative charge raised €728,000 in 2014. 

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