Robert Troy (Longford-Westmeath, Fianna Fail)
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40. To ask the Minister for Finance the rationale for redesignation of vehicles for VRT purposes from category B (commercial) to category A (passenger) in the Finance Act 2017; and if he will make a statement on the matter. [50723/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am informed by Revenue that the re-categorisation of certain vehicles from category B to category A is to ensure that a particular class of vehicles that are designed and used primarily for the carriage of passengers are taxed as such and that there is a level playing field in the taxation of passenger vehicles. 

Over the past three years there has been a significant increase in the number of registrations of vehicles designed for the carriage of four or more persons and with minimal goods carrying capacity. As these vehicles could achieve classification as vehicles for the carriage of goods (N1) under the EU vehicle classification system they were automatically classified as category B for VRT purposes. The amendment in the Finance Bill 2017 corrects this anomaly.

Vehicles which have a passenger capacity of 4 or more persons but which have the cargo area in a separate compartment to the passenger compartment will continue to be charged at the VRT rate of 13.3% as will genuine goods vehicles with one row of seating and the remainder of the space available for the carriage of goods.