Pauline Tully (Cavan-Monaghan, Sinn Fein)
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63. To ask the Minister for Finance if his attention has been drawn to the effective erosion of the tax reliefs available under the disabled drivers and disabled passengers scheme where a disabled person wants to purchase a fully electric vehicle, as VRT is already discounted on the purchase of these vehicles effectively reducing the amount a disabled person can reclaim under the disabled drivers and disabled passengers scheme by roughly 50%; and if he will consider reviewing the disabled drivers and disabled passengers scheme to enable those purchasing a fully electric vehicle to be able to avail of the full maximum reliefs available currently which range from €10,000 to €48,000 on top of the VRT exemption. [25700/24]

Michael McGrath (Cork South Central, Fianna Fail)
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The Disabled Drivers & Disabled Passengers Scheme provides relief from VRT and VAT on an adapted car, as well as an exemption from motor tax and an annual fuel grant. Depending on the nature of the Primary Medical Certificate holder as a disabled driver or a disabled passenger, and on the nature of adaptations, the maximum allowable limit of VRT and VAT reliefs provided across four adaptation categories are €10,000 to €48,000. There is no differentiation between electric and other vehicles in terms of available VRT/VAT relief.

Section 135C(3)(b) of the Finance Act 1992 provides that a Category A series production electric vehicle can avail of relief of up to €5,000 on the VRT due. Thus the amount of VRT due or paid on an electric vehicle may be lower than the maximum DDS relief permitted. In such cases the VRT relief provided through the DDS will equate to the actual VRT due or paid. VAT refunds are provided regardless of the type of vehicle.

More broadly, taxation can play a significant part in instigating and encouraging the necessary shift to greener transport. Recent Budgets have seen reforms made to Vehicle Registration Tax, Motor Tax, the introduction of the NOx surcharge and an emissions-based calculation for benefit-in-kind. These measures are inspired by the ‘polluter pays’ principle, which aims to incentivise ‘greener’ vehicles by ensuring that lower emission vehicles are taxed more favourably and higher emission vehicles pay higher rates. These fiscal measures are critical to delivering on the significant reductions needed in road transport emissions.

In addition, Ireland currently applies a broad suite of incentives to support the uptake of greener vehicles, including tax reliefs and grants for the purchase of battery-powered electric vehicles (BEVs), the Home Charger Grant Scheme subsidises the cost of a home charger installation and additionally electric vehicles pay reduced motor tax and toll fares.

I have no plans therefore to review the disabled drivers and disabled passengers scheme to enable those purchasing a fully electric vehicle to be able to avail of the full maximum reliefs available on top of the VRT exemption.