Written Answers Nos. 229-249
231. Deputy Ken O'Flynn asked the Minister for Transport to provide the Department’s estimate of the current national shortfall in buses required to meet contractual and public-service obligations, including Local Link expansion and rural-service demand. [69687/25]
View answerAs Minister of State at the Department of Transport with special responsibility for Rural Transport, I have responsibility for policy and overall funding in relation to rural public transport service provision; however, I am not involved in the day-to-day operations.
The National Transport Authority (NTA) has statutory responsibility for securing the provision of public passenger transport services nationally. In light of the NTA responsibilities I have referred your question to the NTA for direct reply to you. Please advise my private office if you do not receive a reply within ten working days.
232. Deputy Joe Neville asked the Tánaiste and Minister for Finance if his Department plans to phase out vehicle registration tax; and if he will make a statement on the matter. [68679/25]
View answer233. Deputy Joe Neville asked the Tánaiste and Minister for Finance the financial benefits the vehicle registration tax gives to the economy; and if he will make a statement on the matter. [68680/25]
View answerI propose to take Questions Nos. 232 and 233 together.
The Finance Act 1992, as amended, sets out the rules governing vehicle registration and Vehicle Registration Tax (VRT). In general, the legislation obliges an individual who brings a vehicle into the State to register it within 30 days, and VRT is charged at the point of registration. The way in which the tax is calculated depends on the category of vehicle involved.
VRT on category A vehicles (generally passenger cars) is assessed based on the value of the vehicle and its emissions levels for carbon dioxide (CO2) and nitrogen oxide (NOx). The CO2 component of the VRT charge is a percentage of the vehicle’s Open Market Selling Price (OMSP), ranging from 7% for a vehicle with zero CO2 emissions, up to 41% of the OMSP for vehicles with the highest emission levels. The NOx component of VRT is calculated using a progressive scale, starting from €5 up to €25 per mg/km of the vehicle’s NOx emissions level. As a result, the total VRT charge increases according to the emissions output of the vehicle involved and its market value. The vast majority of VRT receipts are raised from the registration of private passenger cars.
Finance Act 2024 introduced an emissions-based VRT structure for category B vehicles (generally light commercial vehicles) which has applied since 1 July 2025. For vehicles with CO2 emissions of more than 120g/km, VRT is calculated at 13.3% of the OMSP of the vehicle. For category B vehicles with emissions of 0g/km up to and including 120g/km, a reduced rate of 8% of the OMSP applies.
Heavier commercial vehicles, including lorries and buses, come within category C and are charged to VRT at a flat rate of €200.
The VRT system has seen several changes applied over the past number of years, with the aim of strengthening the environmental rationale of the tax in line with Programme for Government and Climate Action Plan commitments. These changes have had a positive impact on the emissions profile of vehicles registering in the State, with significant emissions reductions evident across all bands in recent years. The average emissions figure for newly registered cars (new and used) in 2020 was 135.6g CO2/km (VRT Band 14) and this figure has fallen year on year. Based on 2024 registrations the average emissions figure is currently 107g CO2/km (VRT Band 8).
The large-scale transition to electric vehicles (EVs) is crucial to Ireland meeting its transport emissions reduction targets and the environmental rationale of the VRT system is encouraging behavioural change. EVs currently benefit from a €5,000 VRT relief, subject to a tapering mechanism, which was extended to 31 December 2026 in Budget 2026.
More than half of EU Member States operate vehicle registration taxes. I have no plans to phase out VRT, as alongside its environmental benefits and its role in reducing transport emissions, VRT is an important source of revenue for the Exchequer. VRT receipts in 2024 were €949 million, making up approximately 1% of the overall net tax receipts. Provisional VRT receipts year to date to the end of November 2025 stand at €919.9 million.
234. Deputy Malcolm Byrne asked the Tánaiste and Minister for Finance his views on whether ensuring competition in the Irish financial services market should form part of the remit of the Central Bank; and if he will make a statement on the matter. [68586/25]
View answerThe issue of a competition mandate has been raised in a number of quarters of late, in particular in a recent paper from the Banking and Payments Federation (BPFI). I am aware of a specific secondary competition mandate for financial sector regulators in the UK.
As the Deputy will be aware, primary responsibility for competition policy rests with the Department of Enterprise, Tourism and Employment and the Competition and Consumer Protection Commission (CCPC). Furthermore, the Competition and Consumer Protection Commission (CCPC) is the statutory body responsible for promoting compliance with, and enforcing, competition and consumer protection law in Ireland.
Competition was one area of focus under the Retail Banking Review and the Retail Banking Review Report, published in November 2022, reflected a number of recommendations related to competition.
It recommended that the Central Bank and CCPC build on existing arrangements and establish closer coordination to share perspectives, information and experience on the orderly functioning of markets, consumer protection and competition in the retail banking sector.
Following this, on 24 March 2025 the CCPC entered into a revised cooperation agreement (www.ccpc.ie/business/about/co-operation/co-operation-agreement-between-the-competition-and-consumer-protection-commission-and-the-central-bank-of-ireland/) under section 19 of the 2014 Act with the Central Bank. This agreement provides for increased co-operation between the CCPC and Central Bank in relation to their respective functions.
A recommendation of the Retail Banking Review was implemented in the Access to Cash Infrastructure Act 2025. This requires the Central Bank to carry out and publish cost-benefit analyses of business standards it proposes to prescribe, as well as for regulations it proposes to make, in relation to financial service providers. Any cost benefit analysis carried out will have to consider the impact of any standards or regulations on consumers and their impact on fair competition.
I would point out that the mandate of the Central Bank of Ireland is dictated by the statute of the European System of Central Banks, by the Supervisory EU Legal Acts and by the Central Bank Acts.
It has primary responsibility for the regulation and supervision of financial institutions in terms of consumer protection and prudential requirements and for ensuring ongoing compliance with applicable statutory obligations.
It should not be underestimated how critical a well-functioning regulatory and supervisory system is to the operation of a competitive financial services market. Such a regulatory framework gives certainty and clarity to existing and potential new entrants to different financial markets.
Despite not having a specific competition mandate the Central Bank remains open and engaged with industry. This engagement helps the Bank to understand wider financial services industry perspectives. The Bank continues to support innovation across the regulated financial services sector. Its work on the Regulatory Sandbox is a case in point.
At a European level, the drive to simplify regulation and reduce administrative burdens to increase competitiveness has been incorporated into many different workstreams and these processes can assist in improving the wider competitiveness of the sector.
235. Deputy Séamus McGrath asked the Tánaiste and Minister for Finance the reason that since August 2025, a person on a defined benefit pension can no longer exercise a buy-out bond option if they are above the normal retirement age; and if he will make a statement on the matter. [68687/25]
View answerI am advised by Revenue that the “preserved benefits” – that is, pension benefits related to service in an employment - of a member of an occupational pension scheme, including a defined benefit scheme, may be transferred to an approved buy-out bond (BOB) if the transfer is permitted under section 34 of the Pensions Act 1990. An entitlement to a “preserved benefit” is provided for in section 28 of that Act. The interpretation of the Pensions Act is a matter for the Minister for Social Protection; however, it should be noted that a transfer of pension benefits is not permitted under that Act once payment of a “preserved benefit” has commenced.
I am further advised by Revenue that the change in August, mentioned by the Deputy, relates to an update to the Revenue Pensions Manual which was in response to requests for clarity from practitioners on certain matters, including the rules for transfers of benefits from an occupational pension scheme to a Personal Retirement Savings Account (PRSA). In light of additional queries, including this one, which have arisen, the Manual is being further updated to clarify the position on transfers of pension benefits from one occupational pension scheme to another scheme or to a BOB.
236. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance the number of claims made in each of the past five years for preferential tariff treatment under the EU–UK Trade and Cooperation Agreement (TCA) for buses imported from Great Britain; the number of claims approved; the number refused; and the main reasons for refusals, as recorded by Revenue. [68765/25]
View answer237. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance the number of applications for Returned Goods Relief for buses re-imported into the State from the United Kingdom in each of the past five years; the number approved; the number refused; and the main reasons recorded for refusals. [68766/25]
View answer238. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance if his Department has assessed whether the administrative requirements of the TCA preferential-origin rules or the Returned Goods Relief documentation may be limiting access for smaller bus operators; and if he will outline any guidance, outreach or simplification measures under consideration by Revenue. [68767/25]
View answer242. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance if Revenue has undertaken any review of the administrative burden placed on small and medium-sized licensed bus operators when importing buses from Great Britain, including documentary requirements for origin, VAT self-accounting, and customs declarations; and if he will outline the findings of any such review. [68771/25]
View answer243. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance the total customs duty and import VAT collected on buses imported into the State from Great Britain and other non-EU countries in each of the past five years; and if he will provide a breakdown by year and engine type where available. [68772/25]
View answer248. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance if Revenue has issued guidance to licensed bus operators on the verification of UK origin under the EU–UK Trade and Cooperation Agreement for the importation of buses; and if he will provide copies of any such guidance issued since 2021. [68777/25]
View answerI propose to take Questions Nos. 236, 237, 238, 242, 243 and 248 together.
The European Union's Customs Union is a core part of the single market, applying common rules at its external borders, and national customs administrations are responsible for their day-to-day implementation. All businesses in Ireland, including small and medium enterprises (SMEs), must complete customs declarations for imports and exports, as well as safety and security declarations, when trading with countries outside of the EU. Customs rules including those relating to returned goods relief and proofs for preferential origin are agreed and harmonised at EU level and the provisions are common throughout all Member States. The provisions apply to all businesses regardless of size and it is not possible for Ireland to change the requirements for any business size or for any particular product.
Revenue have detailed information on their website to assist businesses in meeting their customs requirements (www.revenue.ie/en/customs/businesses/importing-exporting/new-customs/index.aspx) including information on how businesses can ease the administrative burden. Revenue also provides email and phone line support if additional assistance is required. Government agencies such as the Local Enterprise Offices (LEOs) and Enterprise Ireland provide an extensive range of supports to local businesses, including support for businesses to meet their customs requirements.
The EU-UK Trade and Cooperation Agreement (TCA) provides the basis for tariff free trade between the EU and the UK where the origin of the goods being imported or exported can be proven. This means a preferential 0% tariff rate will apply if goods entering the EU from the UK are proven to be of UK origin, and a request for this preferential treatment has been included on the relevant customs declaration. When the TCA was agreed in 2020, Revenue issued an e-customs notification to trade outlining the specific origin requirements of the agreement (www.revenue.ie/en/customs/businesses/electronic-systems/ais/ecustoms-notifications/2020/aep-notification-036-2020.pdf). Further information is available on the Revenue website at: www.revenue.ie/en/customs/businesses/origin/eu-uk-trade-agreement/index.aspx.
The rules of origin differ from product to product and Revenue does not provide information on individual products as it is necessary to check the rules for each individual product. The Preferential Origin Rules related to buses (Customs Classification Heading 8702) are described at page 1089 in the TCA - eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:22021A0430(01)&from=EN. If an importer has any queries in relation to preferential origin, they can contact Revenue on origin"asection@revenue.ie.
It is also worth noting that the Customs rules across the EU are currently being reviewed with forthcoming legislation reforming the way businesses can interact with customs administrations. Under the new Union Customs Code reform, businesses that want to bring goods into the EU will be able to submit all the information on their products and supply chains into a single online environment, in a single place in Europe, even if the goods are destined for clearance in many Member States. This aims to be a significant cut in the operators’ customs administrative burden, because they will only need to interact with one single portal and submit data once, for multiple consignments.
In relation to 68765/25 and 68766/25 and the number of claims made for Preferential Origin under the TCA and Returned Goods Relief (RGR) for buses imported from Great Britain, please see the table below.
|
Year |
Number of Preferential Origin Claims |
Number of RGR Claims |
|
2025 |
90 |
36 |
|
2024 |
96 |
51 |
|
2023 |
69 |
37 |
|
2022 |
150 |
40 |
|
2021 |
362 |
16 |
It should be noted that these are the number of applications for preferential origin and RGR on our import system. Statistics on applications that were rejected for validation reasons by the computer system when submitted, or where applications were rejected as a result of pre-clearance or post-clearance checks are not recorded in that detail on our system.
There is a reduction in the number of Preferential Origin Claims since 2021. Revenue note that there may be numerous reasons for this including changing supply chains as businesses look to the EU to purchase goods post-Brexit, changes in bus technology impacting on origin as well as a greater understanding by businesses of the TCA preferential origin requirements.
In relation to 68772/25 and the total customs duty and import VAT collected on buses imported into the State from Great Britain and other non-EU countries, please see the table below.
|
Classification 6 digit code |
Descriptions |
Year |
Customs €m |
Postponed Accounting for VAT €m |
VAT €m |
Total €m |
|
870210 |
With only compression-ignition internal combustion piston engine (diesel or semi-diesel) |
2025 |
1.7 |
16.8 |
1.6 |
20.1 |
|
870210 |
With only compression-ignition internal combustion piston engine (diesel or semi-diesel) |
2024 |
2.3 |
14.7 |
1.6 |
18.6 |
|
870210 |
With only compression-ignition internal combustion piston engine (diesel or semi-diesel) |
2023 |
1.2 |
9.2 |
1.5 |
11.9 |
|
870210 |
With only compression-ignition internal combustion piston engine (diesel or semi-diesel) |
2022 |
0.8 |
4 |
1.5 |
6.3 |
|
870210 |
With only compression-ignition internal combustion piston engine (diesel or semi-diesel) |
2021 |
0.4 |
1.7 |
0.7 |
2.8 |
|
870220 |
With both compression-ignition internal combustion piston engine (diesel or semi-diesel) and electric motor as motors for propulsion |
2025 |
0 |
0 |
0 |
0 |
|
870220 |
With both compression-ignition internal combustion piston engine (diesel or semi-diesel) and electric motor as motors for propulsion |
2024 |
0 |
0 |
0 |
0 |
|
870220 |
With both compression-ignition internal combustion piston engine (diesel or semi-diesel) and electric motor as motors for propulsion |
2023 |
0 |
0 |
0 |
0 |
|
870220 |
With both compression-ignition internal combustion piston engine (diesel or semi-diesel) and electric motor as motors for propulsion |
2022 |
0 |
1.1 |
0 |
1.1 |
|
870220 |
With both compression-ignition internal combustion piston engine (diesel or semi-diesel) and electric motor as motors for propulsion |
2021 |
0 |
20.7 |
0 |
20.7 |
|
870230 |
With both spark-ignition internal combustion piston engine and electric motor as motors for propulsion |
2025 |
0 |
1.4 |
0 |
1.4 |
|
870230 |
With both spark-ignition internal combustion piston engine and electric motor as motors for propulsion |
2024 |
0 |
1.2 |
0 |
1.2 |
|
870230 |
With both spark-ignition internal combustion piston engine and electric motor as motors for propulsion |
2023 |
0.2 |
0.8 |
0 |
1 |
|
870230 |
With both spark-ignition internal combustion piston engine and electric motor as motors for propulsion |
2022 |
0 |
0 |
0 |
0 |
|
870230 |
With both spark-ignition internal combustion piston engine and electric motor as motors for propulsion |
2021 |
0 |
0 |
0 |
0 |
|
870240 |
With only electric motor for propulsion |
2025 |
0 |
0.4 |
0 |
0.4 |
|
870240 |
With only electric motor for propulsion |
2024 |
0.4 |
2.4 |
0.1 |
2.9 |
|
870240 |
With only electric motor for propulsion |
2023 |
0 |
0.9 |
0 |
0.9 |
|
870240 |
With only electric motor for propulsion |
2022 |
0.3 |
4.9 |
0 |
5.2 |
|
870240 |
With only electric motor for propulsion |
2021 |
0.1 |
0.2 |
0 |
0.3 |
239. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance if he has examined the feasibility of developing a non-VAT capital support mechanism, such as an accelerated capital allowance or targeted grant, to support licensed bus operators in purchasing new low-emission vehicles, given the VAT constraints described in his reply to Parliamentary Question Nos. 143 and 144 of 26 November 2025; and if he will make a statement on the matter. [68768/25]
View answer245. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance if the Department has modelled the fiscal impact of allowing licensed bus operators to benefit from an accelerated capital allowance for the purchase of new low-emission buses; and if he will provide the estimated costings under scenarios of 20 percent, 30 percent and 40 percent accelerated allowance rates. [68774/25]
View answerI propose to take Questions Nos. 239 and 245 together.
There has been no specific assessment into the fiscal impact or general feasibility studies of allowing licensed bus operators to benefit from non-VAT capital supports, such as an accelerated capital allowance for the purchase of low-emission buses as the Deputy has suggested.
The Deputy may be aware that, in general, capital allowances in the form of wear and tear allowances are available in respect of expenditure incurred on qualifying business assets, including buses, at a rate of 12.5% annually over eight years. However, there are two accelerated capital allowances schemes which bus operators may qualify for where the conditions are met.
Section 285C of the Taxes Consolidation Act (TCA) 1997 provides for an accelerated capital allowances scheme for capital expenditure incurred on gas and hydrogen propelled vehicles and refuelling equipment. This scheme commenced on 1 January 2019 and was extended to hydrogen powered vehicles from 1 January 2022. The scheme provides for 100% of the capital allowances available in respect of qualifying equipment or vehicle to be claimed in the year in which it is first used in the business. Bus operators who incur capital expenditure on buses which run on compressed natural gas, liquefied natural gas, biogas or hydrogen may qualify for accelerated capital allowances under the scheme.
Section 285A of the TCA 1997 provides for an accelerated capital allowance scheme for capital expenditure incurred by businesses on energy efficient equipment. The scheme again provides for 100% of the capital allowances available in respect of qualifying equipment to be claimed in the year in which it is first used in the business. To qualify for the scheme, the item of energy-efficient equipment must be included on a register (Triple E register) published and maintained by the Sustainable Energy Authority of Ireland (SEAI). While certain low emission vehicles are currently included on the register, there are no electric vehicle (EV) buses on the register at present.
I am advised by Revenue that separate data on capital allowances claimed in respect of the cost of low-emission buses is not available. Therefore, the estimated costs requested are not available.
240. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance if his Department has carried out any analysis of the economic impact on school-transport and mixed-service bus operators arising from their exclusion from the VAT refund scheme for touring coaches; and if he will outline the findings of any such internal assessments. [68769/25]
View answer241. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance the extent to which Revenue’s VAT and customs treatment of buses has been considered. [68770/25]
View answer244. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance if his Department has engaged with the Department of Transport regarding the tax implications identified by operators participating in Local Link and school transport tenders, particularly the inability to reclaim VAT on new buses; and if he will outline the nature and outcome of any such interdepartmental discussions. [68773/25]
View answer246. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance if any assessment has been carried out of the interaction between the VAT exemption for passenger transport and Ireland’s transport-sector decarbonisation targets; and if he will provide the conclusions of any such analysis. [68775/25]
View answer247. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance the number of licensed bus operators that have accessed the VAT 71 touring-coach refund scheme in each of the past five years; the total value refunded; and whether the Department has analysed the differential impact of this scheme on touring operators compared with school-transport and mixed-service operators. [68776/25]
View answerI propose to take Questions Nos. 240, 241, 244, 246 and 247 together.
The position in relation to the VAT refund scheme for touring coaches remains as outlined to the Deputy in response to Question 143 and 144 of 26 November 2025. I can confirm, given that position, that no analysis has been carried out of the economic impact of school-transport and mixed-service bus operators arising from their exclusion from the VAT refund scheme.
I can also confirm that no assessment has been carried out in relation to the interaction of the VAT exemption for passenger transport and Ireland’s transport-sector decarbonisation targets.
Revenue has provided data on operators who have availed of the VAT71 Scheme since 2021 as follows:
|
Classification 6 digit code |
Descriptions |
Year |
Customs €m |
Postponed Accounting for VAT €m |
VAT €m |
Total €m |
|
870210 |
With only compression-ignition internal combustion piston engine (diesel or semi-diesel) |
2025 |
1.7 |
16.8 |
1.6 |
20.1 |
|
|
|
2024 |
2.3 |
14.7 |
1.6 |
18.6 |
|
|
|
2023 |
1.2 |
9.2 |
1.5 |
11.9 |
|
|
|
2022 |
0.8 |
4 |
1.5 |
6.3 |
|
|
|
2021 |
0.4 |
1.7 |
0.7 |
2.8 |
|
870220 |
With both compression-ignition internal combustion piston engine (diesel or semi-diesel) and electric motor as motors for propulsion |
2025 |
0 |
0 |
0 |
0 |
|
|
|
2024 |
0 |
0 |
0 |
0 |
|
|
|
2023 |
0 |
0 |
0 |
0 |
|
|
|
2022 |
0 |
1.1 |
0 |
1.1 |
|
|
|
2021 |
0 |
20.7 |
0 |
20.7 |
|
870230 |
With both spark-ignition internal combustion piston engine and electric motor as motors for propulsion |
2025 |
0 |
1.4 |
0 |
1.4 |
|
|
|
2024 |
0 |
1.2 |
0 |
1.2 |
|
|
|
2023 |
0.2 |
0.8 |
0 |
1 |
|
|
|
2022 |
0 |
0 |
0 |
0 |
|
|
|
2021 |
0 |
0 |
0 |
0 |
|
870240 |
With only electric motor for propulsion |
2025 |
0 |
0.4 |
0 |
0.4 |
|
|
|
2024 |
0.4 |
2.4 |
0.1 |
2.9 |
|
|
|
2023 |
0 |
0.9 |
0 |
0.9 |
|
|
|
2022 |
0.3 |
4.9 |
0 |
5.2 |
|
|
|
2021 |
0.1 |
0.2 |
0 |
0.3 |
The number of claimants and value of claims under the Refund Order in the years 2021-2025 are presented in the table below:
|
Year |
Number of claimants |
Value of claims |
|
2021 |
23 |
€0.8m |
|
2022 |
67 |
€7.2m |
|
2023 |
85 |
€7.5m |
|
2024 |
128 |
€13.4m |
|
2025* (to 30/11/25) |
107 |
€15.8m |
249. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance if the Revenue Commissioners will provide a breakdown of all vehicle-registration enforcement actions in each of the past five years by vehicle category, including Irish-registered, EU-registered, non-EU-registered, and Ukrainian-registered vehicles, in order to establish the scale of compliance activity by exemption type. [68946/25]
View answerThe Finance Act 1992, as amended, sets out the rules governing vehicle registration and Vehicle Registration Tax (VRT). The Vehicle Registration Tax Manual, Part 5, Enforcement, gives examples of the various appropriate actions to be taken in circumstances where an authorised Revenue officer may have reason to believe that the VRT regulations have not been complied with.
I am advised by Revenue that it does not record statistics in relation to enforcement activity specific to temporary exemption or by a breakdown of vehicle categories for Irish-registered, EU-registered and Ukrainian registered vehicles. However, the table below outlines the overall numbers of cases where enforcement action has been taken in relation to vehicle registration and VRT in the past 5 years:
|
Year |
Written Warning |
Detention |
Seizure |
Compromise sum paid |
|
2021 |
97 |
16 |
444 |
436 |
|
2022 |
157 |
28 |
878 |
863 |
|
2023 |
361 |
54 |
900 |
882 |
|
2024 |
369 |
23 |
925 |
892 |
|
2025 (30th Nov) |
415 |
41 |
831 |
787 |
