Barry Heneghan (Dublin Bay North, Independent)
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70. To ask the Minister for Finance if he will examine the tax exemption on adapted disability which has remained unchanged for twenty years despite increased costs of vehicles, VAT, and VRT (details supplied); and if he will make a statement on the matter. [36553/25]

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 maximum VRT and VAT reliefs under DDS provisions are set according the nature of the Primary Medical Certificate holder as a disabled driver or a disabled passenger and on the level of adaption required for the vehicle. Statutory Instrument 634 of 2015 provided for significantly enhanced maximum reliefs repayable in respect of a qualifying vehicle, to €10,000, €16,000 and €22,000, respectively.

Statutory Instrument 320 of 2023 introduced a fourth category of relief - for in-vehicle wheelchair accessible adaptions - with maximum reliefs of €48,000 for disabled drivers and €32,000 for disabled passengers. The setting of these maximum reliefs was informed by international practice which demonstrated that many countries provide additional support for wheelchair accessible adaptions.

As regards the minimum periods for which an adapted vehicle must be used as part of the DDS conditions, I understand that international practice typically requires an adapted vehicle to be retained for a period between 5 and 10 years. The DDS specifies the following minimum retention periods:

The Deputy should note that my Department and I consider 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.