Emer Higgins (Dublin Mid West, Fine Gael)
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267. To ask the Minister for Finance if a 50% discount on VRT for new cars for taxi-driving would increase the number of taxis. [54565/22]

Emer Higgins (Dublin Mid West, Fine Gael)
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268. To ask the Minister for Finance if he will outline the regulations concerning VRT for taxi vehicles; and the way in which these rules integrate with EU laws. [54566/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 267 and 268 together.

Ireland’s legislation on the registration of vehicles and vehicle registration tax (VRT) is contained in Sections 130 to 144A of the Finance Act 1992, as amended, together with various Vehicle Registration and Taxation Regulations made under that Act. The legislation is based on EU law in respect of type-approval and classification of vehicles, and it also implements in Irish law certain EU rules relating to vehicle identification matters, such as the format of registration plates.

VRT is a national tax which is assessed at the time of a vehicle’s registration. Generally, for passenger cars (and indeed any passenger vehicle with a capacity of up to eight persons) the amount of VRT chargeable is based on the vehicle’s value at the time of registration and its emissions, and this approach results in higher VRT charges for higher-emitting vehicles of the same value. The VRT charge does not vary according to whether or not the vehicle concerned is intended for use as a taxi. Of course, where a vehicle is used as a taxi, then vehicle costs (including VRT incurred) can be taken into account when calculating the taxable profits of the business – specific rules apply.

Finally, the Deputy may also wish to note that as part of the Government’s policy on climate change, until the end of 2023, Battery Electric Vehicles (BEVs), where they do not exceed a certain value, are entitled to VRT relief of up to €5,000, applied at the time of registration. This relief also applies to taxis.