Dáil Éireann Debate, Thursday - 23 November 2023
80. Deputy Denis Naughten asked the Minister for Finance if he will consider reviewing the rate of VRT that applies to cars with advanced driver-assistance systems technologies that assist drivers in driving and parking functions and, as a result, dramatically reduce road traffic accidents; and if he will make a statement on the matter. [51596/23]
View answerDuring Science Week, the Oireachtas heard presentations from Professor Martin Mullins from the University of Limerick and Professor Martin Glavin of the University of Galway on the huge potential to reduce traffic accidents through driver-assisted technology in cars. They have made a very strong argument for tax incentives to make this happen. Will the Minister consider this in the interests of reducing road deaths in Ireland?
I thank the Deputy for raising this issue. He should note that vehicle registration tax is an emissions-based tax calculated on the value of the car. There is no specific VRT rate for cars with this type of technology.
Under the Finance Act 1992, VRT is assessed on a vehicle at the time of registration in the State and the way it is calculated depends on the category of the vehicle involved. VRT on category A vehicles, generally passenger cars and certain special utility vehicles, is based on the vehicle’s value and its emissions level, with higher charges for higher emitting vehicles of the same value. There are two components of the VRT charge for these vehicles, relating to their carbon dioxide, CO2, and nitrous oxide, NOx, emissions. The CO2 component of the VRT charge is calculated by multiplying the value of the vehicle - its open market selling price - by a percentage from a 20-band table, with the vehicle’s CO2 emissions level determining which band applies. Vehicles with the lowest CO2 emissions fall into band 1, charged at 7%, while those with the highest emissions fall into band 20 charged at 41%. The NOx component of the VRT charge is calculated using a progressive scale, starting from €5 and rising to €25 per mg/km of the vehicle’s NOx emissions level. The VRT for category B vehicles, generally light commercial vans, is 13.3% of the value of the vehicle. There is a flat VRT charge of €200 for category C vehicles, which include larger commercial vehicles, agricultural tractors and buses.
The appropriate category is decided at the time of registration based on the vehicle’s technical categorisation under EU type-approval law, taking account of the documentation presented at the time of registration. The classification of vehicles for VRT purposes reflects to a significant degree the categories used for the EU classification of vehicles as set out in EU legislation, particularly those relating to the type approval of passenger vehicles, two- and three-wheeled motor vehicles, and agricultural or forestry tractors. All vehicles must have type approval and the National Standards Authority of Ireland is the Irish type-approval authority. The changes made to VRT structures in recent years have been focused on incentivising the uptake of low-emissions vehicles. The overall approach to tax policy is kept under review as part of the tax strategy group, TSG, and the budgetary cycle.
In summary, VRT is determined by the type and emissions value of the car, as per the recent changes made to the VRT structure. No account is taken of features in cars, such as advanced driver assistance technologies, which can assist drivers in driving and parking functions. Additionally, there is no mechanism by which VRT is applied to vehicles on the basis of safety or likelihood of the vehicle being involved in road traffic accidents.
I have two young transition year students in the Gallery this week. I am sure they have now just got a perfect example of how to spend four minutes answering a question without actually answering the question that has been put. I thank the Minister for that education. I would like him to answer the question I put to him. Will he consider looking at the issue of vehicle registration tax to try to drive an increase in road safety standards in this country? In 2022, we had the highest number of deaths on our roads in six years. Sadly, it is very likely that 2023 will surpass this figure. There is absolutely no doubt that more enforcement is needed on our roads but the technology available also needs to be used. Based on UK data, it is estimated that automated vehicle technologies, for example, automated emergency braking, lane departure warning, and adaptive cruise control, combined, could reduce accidents by up one quarter. Will the Minister examine this?
I thank the Deputy. The TY students are very welcome. I hope they enjoy their visit to Leinster House. To answer the question directly, we are open to examining what changes might be appropriate to the VRT system in a way that helps all our collective efforts to reduce accidents on our roads and the level of fatalities, which have unfortunately been going in the wrong direction in recent times. It behoves all of us to be open-minded in examining what we can do by using new technology to reduce the risk of accidents, and to incentivise the use of vehicles that help to protect drivers and passengers, which will help to highlight oncoming dangers and the risk of collisions that can impact on cyclists, pedestrians and so on. The answer to the Deputy's question is "Yes". I am open to examining what changes might be appropriate. I look forward to working with him in that regard.
Every car that goes onto Irish roads should have automated emergency braking, lane departure warning, blind sport detection and drowsiness and attention detection. Those four measures alone would have a significant impact on road traffic deaths. Based on UK road safety reports for 2019 and research that was carried out on that, those types of measures would reduce skidding and overturning accidents by 41%, and pedestrian accidents by 28.4%. Sadly, to date this year, we have had 38 pedestrian deaths on our roads, which are the highest figures in 15 years. If these measures were introduced on our roads, they would reduce the number of those pedestrian deaths by 11 so far this year. These are people who would be alive and walking around today if we had this type of technology on Irish roads.
We have seen far too many tragedies on Irish roads in recent months. There is not a household in the country that has not been impacted in terms of at least knowing somebody who has lost their life or who has been subjected to horrific injuries as a result of a road traffic accident. I have seen far too many of them in my community.
I assure the Deputy that any policy that helps reduce the risk and leads to reduced accidents and fewer fatalities on our roads is one I will support. The system of taxation we employ for vehicles can play a role. Some of the issues raised by the Deputy are relevant to other Departments that lead on policy on this area, in particular the Department of Transport. The Minister for Transport and the Minister of State at the Department are examining what more can be done to reduce the accidents.
There is a priority question to them next week.
I am sure there is. I am happy to work with the Deputy on his specific proposal.
