Sandra McLellan (Cork East, Sinn Fein)
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257. To ask the Minister for Finance further to Parliamentary Question No. 331 of 9 June 2015, if he will declare a vehicle (details supplied) exempt from vehicle registration tax, as he has discretion to do under section 134(5) of the Finance Act 1992; and if he will make a statement on the matter. [24979/15]

Michael Noonan (Limerick City, Fine Gael)
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Section 134(5) of the Finance Act 1992 provides that the Minister for Finance 'may authorise the Commissioners to register a vehicle, subject to such conditions, limitations or restrictions (if any) as they may impose, either without payment of vehicle registration tax or on payment of the tax at less than the rate ordinarily chargeable or, where the said tax has been paid, to repay the tax in whole or in part'.

From time to time, I receive requests from charities and non-profit organisations who carry out important work for the community to exempt their vehicles from Vehicle Registration Tax (VRT) or reduce their VRT liability.

The Deputy will understand that I am extremely reluctant to exercise my discretionary powers provided by Section 134(5) of the Finance Act 1992 to reduce the tax liability of an individual vehicle. One of the important features which ensures the integrity and fairness of the Irish tax system is the limitation of this kind of Ministerial discretion over an individual or a group's tax liability. 

I am of the view that any tax relief must be explicitly provided for in law so that citizens can be certain of the rules and policy rationale of each relief. If a Minister for Finance were to provide VRT relief on a case-by-case basis to individuals or groups it would introduce an unwarranted level of uncertainty and inequity to the system of VRT reliefs, as the provision of tax relief would not then be matter of law as laid down by or authorised by the Oireachtas, but rather a personal decision of the Minister of the day. I do not believe that such a practice would be appropriate.

Accordingly, I do not intend to exercise those powers granted to me by Section 134(5) of the Finance Act 1992.