Disabled drivers 'disappointed' by finance department's response to report

Major long-term changes to the disabled drivers' car tax scheme suggested in a report last year are unlikely before the next …

Major long-term changes to the disabled drivers' car tax scheme suggested in a report last year are unlikely before the next election, say disability groups.

The Department of Finance has implemented the report's suggestion to speed up appeals for rejected applicants. It has provided for an increase in the number of doctors on the disabled drivers appeals panel at the National Rehabilitation Hospital, from three to 10, double the report's suggestion, according to the department. An interdepartmental group, set up in 1998 to review the tax scheme for disabled drivers, finished its report in 2002 but it was published only last year. It made one urgent and five long-term recommendations.

Drivers and passengers with severe physical disabilities may buy a car free of VRT and VAT every two years. The scheme is for people with severe and permanent disablement who need to adapt their vehicles.

The number of applicants increased hugely in recent years. Those who do not meet criteria on mobility can appeal, but only a tiny number are successful - the backlog is estimated at over 500.

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It's thought many of the appeals are from stroke victims, those with MS and arthritis. Others appealing include drivers with one arm, drivers and passengers with cystic fibrosis, rheumatoid arthritis, visual impairment, heart ailments, cerebral palsy, epilepsy and autism.

Representatives of the disabled were disappointed at the report's longer-term recommendation on permitting tax-free car changes only every three years, or alternatively a reduction in tax relief on second and later applications.

About 85 per cent of people in the scheme renew their cars every two years. In response to a parliamentary question from Labour's Kathleen Lynch, the Minister for Finance said the review group was not convinced that cars of disabled drivers depreciated more significantly than other cars.

Other longer-term recommendations include consideration of changing medical criteria to a more general mobility-focused assessment and introducing a minimum age for disabled passengers; parents of a disabled baby are entitled to the tax break if they incur 10 per cent of the pre-tax price of the car on adaptations. The report says disabled passengers should get allowances instead of tax rebates.

There are over 11,500 members in the scheme, 60 per cent of whom are disabled passengers. It cost €36 million in 2003 and €44 million last year, excluding road tax, according to the Revenue Commissioners.