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Fuel Grant Scheme to replace Disabled Drivers Excise Duty Relief following European Court of Justice Ruling to end Excise Relief

Minister Noonan assures members of the Disabled Drivers and Disabled Passengers scheme that they would not lose out as a result

Excise relief on fuel provided as part of the Disabled Drivers and Disabled Passengers Scheme will end at the end of 2014

New fuel grant scheme of the same value to replace scheme

No change in benefit to members of the Disabled Drivers and Disabled Passengers scheme.

Following the ruling by the European Court of Justice in April 2013, the Disabled Drivers and Disabled Passengers scheme will be discontinued on the 31st December 2014. However, a new grant scheme will be put in place before the relief ends and there will be a seamless transition between the two schemes. The Minister for Finance, Mr. Michael Noonan, T.D. today (21st March 2014) assured members of the Disabled Drivers and Disabled Passengers scheme that they would not lose out as a result of ending of this scheme.

The Minister said “In line with the decision of the European Court of Justice in April 2013 and following negotiations with the EU Commission this relief will come to an end on 31 December 2014. I would like to assure disabled drivers that a new fuel grant scheme will be put in place before the relief ends and there will be a seamless transition between the two schemes. Members of the current scheme won’t be at a loss. Arrangements will be made during the year to provide for the new fuel grant scheme for disabled drivers which will have the same levels of support as the current excise relief scheme.”

Notes to editors:

The Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme is open to people with disabilities who meet the specified criteria and have obtained a Primary Medical Certificate to that effect. The scheme provides relief from VAT and VRT, up to a certain limit, on the purchase of a car adapted for the transport of a person with specific severe and permanent physical disabilities. An exemption from annual motor tax and a relief from excise on the fuel used in the car are also provided. However in April last year the European Court of Justice ruled that the excise relief component of the scheme was incompatible with the EU Energy Tax Directive and therefore must be discontinued.

SI 139 of 2014 can be accessed at http://www.finance.gov.ie/sites/default/files/SI%20139%20of%202014.pdf