VAT on driving lessons
Griffin argued that 10 per cent VAT on driving-school lessons penalises and deters learner drivers, undermining road safety; the Minister said VAT was the Finance Minister’s responsibility and saw no evidence it affected safety or deterred lessons. Fitzpatrick raised the burden on unemployed people seeking work, but the Chair moved to the next question without an answer.
asked the Minister for the Environment if 10 per cent VAT charge on learner drivers of Motor Schools Association of Ireland is consistent with his road safety campaign.
Comment on this
Would the Minister not agree that every encouragement should be given to learner drivers to avail of the services of schools of motoring and that the 10 per cent VAT charge on these schools of motoring is a penalty on learner drivers and is completely inconsistent with the road safety campaign initiated by the Minister's Department?
Comment on this
It has been estimated that between 30 and 40 per cent of candidates coming forward for driving tests are pupils of schools of motoring. On the other hand, the application of VAT on the tuition fees of schools of motoring is a function of the Minister for Finance. There is no evidence to suggest that the charging of VAT is in any way inconsistent with the principles of road safety.
Comment on this
Would the Minister recommend to the Minister for Finance that a lower rate of VAT should be charged, or indeed a zero rate?
Comment on this
I have no evidence to suggest that the charging of VAT is in any way inconsistent with the principles of road safety.
Comment on this
Surely anything that deters learner drivers from attending schools of motoring must have a detrimental effect. It is a penalty on learner drivers and a deterrent to them to avail of the services of schools of motoring with consequent bad driving and test failures.
Comment on this
I do not think that the 10 per cent VAT charge will deter any learner driver from taking lessons from schools of motoring.
Comment on this
(Cavan-Monaghan): Would the Minister agree that driving lessons are a service which unemployed people are very often required to avail of in order to get employment? Does the Minister think it is reasonable that VAT should be charged in case of unemployed people seeking employment by this method?
