A FIANNA Fáil TD has called on Minister for the Environment John Gormley to review the laws on the taxing of commercial vehicles in order to clear up the confusion about the issue.
Clare Fianna Fáil TD Timmy Dooley has written to the Minister asking him to amend the law, if necessary, in order to end confusion caused by a recent circular issued by the department.
The circular has raised concerns among farmers, small businesses and the motor industry, and prompted calls for clarification and flexibility on the use of commercial vehicles.
Mr Dooley said: “It seems ludicrous to suggest that a small business owner, farmer or tradesman would be unable to use a commercially taxed vehicle for minor personal use over the course of a day.”
The facts of life for people in rural Ireland were that a farmer might have to drop a child to school in a jeep, on the way to the cattle mart, or a carpenter might have to visit the shop on the way home to collect groceries, he said. It appeared from the information circulated by the department that this would amount to a breach of the law.
“This is farcical and unenforceable and the Minister needs to regularise the matter without delay.”
Mr Dooley said he had formally written to the Minister requesting a review and suggesting that commercial taxation apply to vehicles whose principle use is for commercial purposes while recognising the practical manner in which people go about their daily lives.
Mr Dooley said his proposal would allow owners of commercially taxed vehicles to use them for social, domestic and pleasure purposes as the need arose.
President of the Irish Farmers’ Association John Bryan said the requirement that a motorist would sign a “goods only” declaration when taxing small commercial vehicles “has sent a shock wave through rural Ireland”.
He said farmers were now “fearful” that the use of a van or jeep to collect a child from school or do the weekly shopping “could be deemed a criminal act”.
The association’s leader said he was “not convinced” by efforts from the Department of the Environment to say that nothing had changed in relation to the use of commercial vehicles by farmers.
“It is obvious that the Government is urging county councils to tighten the rules on commercial vehicles. This would put unbearable pressure on farm families and rural businesses,” he said.
The IFA called on Mr Gormley “to clarify precisely when and in what circumstances” a goods-only declaration was required.
Mr Bryan’s comments were echoed by Small Firms Association director Avine McNally, who said being banned from using a commercial vehicle for domestic or pleasure purposes was “another nail in the coffin for small business”.
She said the burden of additional tax payable for private use of a commercial vehicle amounted to a “stealth tax” imposed on the small business sector “from a Government that claims to be supportive of the small business community”.
“The Government seem to forget that small firms are the backbone of the Irish economy, they are different and important – important because they create jobs and different because they are managed by people who are willing to take risks even in difficult times.”
She added: “It has been stated that this proposal would be difficult to enforce and I question would it not be better for Government to focus their attention on actions and initiatives that would assist, not hinder, small firms.”
Some motor dealers claimed clients had already sought to cancel deals to buy commercial vehicles. According to Derek Burton Motors, 90 per cent of commercial vehicles it sells are destined for small business owners and farmers.
General manager Mark Burton said he did not believe tradespeople would be able to afford a second car to use at weekends, if they were to be prevented from using their commercial vehicles for private use. And many would not have the extra money – up to €900 – to tax their vehicles as private cars. He said the business had already received calls from “a few customers” looking to see how they could get out of their arrangements to buy four-by-four vehicles.
AA spokesman Conor Faughnan said it was difficult to see a situation where vehicles would be stopped to see if they were carrying groceries for personal use, or if the passengers were “coming from Mass on a Sunday”.
Brian McConnell of Windsor Motors said the department’s circular was “totally unjustified”.
A spokesman for the department reiterated that the tax position had not changed, and maintained it was “business as usual” for users of commercial vehicles.
