Matt Shanahan (Waterford, Independent)
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106. To ask the Minister for Finance if his Department will allow owners of registered companies to purchase certain vehicles (details supplied) once they can demonstrate a genuine need within their business; and if he will make a statement on the matter. [47659/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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Under the Finance Act 1992, Vehicle Registration Tax (VRT) is assessed on a vehicle at the time of its registration and the way the tax is computed depends on the category of vehicle involved. VRT on Category A vehicles (generally passenger cars and certain Special Utility Vehicles) is assessed based on the value of the vehicle and its emissions levels for carbon dioxide (CO₂) and nitrogen oxides (NOx).  The VRT on Category B vehicles (generally light commercial vehicles and motor caravans) is assessed at 13.3% of the value of the vehicle. In all cases, a vehicle’s value is determined in accordance with particular provisions in the law. The ownership of the vehicle does not affect the VRT calculation, and the tax law does not restrict company owners from purchasing vehicles.

The appropriate category for a particular vehicle is decided at the time of its registration based on the vehicle’s technical categorisation under EU type approval law, taking account of the documentation presented at the time of registration including its EU Classification.

A category B vehicle is defined in the Finance Act based, in large part, on EU type approval classification N1. It is defined as meaning:

"- a category N1 vehicle that has three seats or less,

- a category N1 vehicle to which a BE bodywork code has been assigned, or

- a motor caravan”

As the Deputy’s query relates to a new five-seater vehicle, the vehicle concerned is unlikely to fulfil the criteria of a Category B vehicle and so, under the legislation would be a category A vehicle.

If the taxpayer concerned wishes to contact Revenue regarding the specific vehicle, they can contact the National VRT Service on the Revenue website via My Enquiries.

Finally, the Deputy’s query also involves Motor Tax. Policy relating to Motor Tax is a matter for my colleague the Minister for Transport.