Barry Heneghan (Dublin Bay North, Independent)
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281. To ask the Minister for Finance if he will review the current vehicle registration tax and VAT exemption limits for vehicles adapted for individuals with disabilities, given the €16,000 cap has remained unchanged for over two decades despite rising vehicle costs and taxes; if he will consider introducing index-linking to ensure these exemptions keep pace with inflation; and if he will make a statement on the matter. [36181/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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It is assumed that the Deputy is referring to the Disabled Drivers and Disabled Passengers Scheme (DDS). The DDS provides relief from VRT and VAT on an adapted car, as well as an exemption from motor tax and an annual fuel grant.

The relief from Value Added Tax and Vehicle Registration Tax are generous in nature amounting to up to €10,000, €16,000, €22,000, €32,000 and €48,00 depending on the level of adaption required for the vehicle and whether the person is a disabled driver or disabled passenger as defined (i.e. that holds a Primary Medical Certificate).

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, supporting Government policy to tackle transport emissions. The amount of the remission or repayment of VAT and VRT is decided on the basis of the adaptation categories set out in Statutory Instrument 353 of 1994 (as amended).

Finally, the Deputy should note that my Department and I share concerns that the DDS is no longer fit-for-purpose and believe it should be replaced with a needs-based, grant-led approach for necessary vehicle adaptations that could serve to improve the functional mobility of the individual.

However, this is very much a matter for Government as my Department has oversight of the DDS only and does not have responsibility for disability policy.

Under the aegis of the Department of the Taoiseach, the sub-group convened to progress the National Disability Inclusion Strategy proposals for a needs-based, grant-aided, modern vehicle adaptation supports to replace the DDS, generated a report that was submitted to the Department of the Taoiseach. In considering this report, it has been proposed that a new grant-based scheme be developed and led by the Department of Transport.

The Department of Transport is beginning the development of this new scheme. The existing DDS remains with the Department of Finance and will continue to be reviewed in the context of the development of the new scheme by the Department of Transport.