Written answers
Tuesday, 27 July 2021
Department of Finance
Tax Code
John Brady (Wicklow, Sinn Fein)
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378. To ask the Minister for Finance if his attention has been drawn to the negative financial impact that the increase in VRT and VAT in Budget 2021 has had on persons who need to purchase a specially adapted vehicle on disability grounds; if he plans to make any changes to VRT or VAT for disabled drivers; if so, if he will implement a refund scheme for persons who have borne the cost of the additional VRT and VAT to purchase a new specially adapted vehicle with a ramp and hoist; and if he will make a statement on the matter. [40017/21]
Paschal Donohoe (Dublin Central, Fine Gael)
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The Disabled Drivers & Disabled Passengers Scheme provides relief from VRT and VAT on the purchase and use of an adapted car, as well as an exemption from motor tax and an annual fuel grant. Details of these reliefs and the grant in respect of fuel usage are available on the Revenue website.
The relief from Value Added Tax and Vehicle Registration Tax are generous in nature amounting to up to €10,000, €16,000 or €22,000, depending on the level of adaption required for the vehicle.
It should be noted that the new VRT charging table does not necessarily result in increased VRT rates. VRT is an emissions-based tax and therefore the amount of VRT incurred will vary across different vehicle makes and models. Typically, the new rates structure will result in increases for high emission vehicles, and decreases for lower emission vehicles.
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