Pauline Tully (Cavan-Monaghan, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

129. To ask the Minister for Finance if he is concerned by the situation whereby disabled people who need to have vehicles modified for their use outside of the State are facing high additional costs due to VRT; his plans to alleviate this; and if he will make a statement on the matter. [11389/23]

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 93 and 129 together.

The Deputy should note at the outset that VRT is an emissions-based tax and therefore the amount of VRT incurred will vary across different vehicle makes and models. The charge is determined by the Open Market Selling Price of the vehicle. Recent reform to the rates structure results in increased VRT rates for high emission vehicles, while lower emission vehicles continue to incur low rates of VRT. This reflects the environmental rationale of the tax and underpins Government commitments to decarbonise road transport. It is calculated at the point of registration of the vehicle in the State, regardless of the vehicles origin.

It should also be noted that for category C vehicles (typically those with 10 or more seats) there is a flat rate VRT charge of €200.

In this context, the Disabled Drivers & Disabled Passengers Scheme provides relief from Vehicle Registration Tax and Value Added Tax on the purchase and use of an adapted vehicle, as well as an exemption from motor tax and an annual fuel grant. The relief from VAT and VRT 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. These reliefs as a general rule cover the needs of most people availing of this scheme. I note however, the Deputies concerns and have asked my officials to examine this matter.