asked the Minister for Finance the reason excise duty (details supplied) on imported tyres is less than that on Irish produced tyres; if it is his intention to correct this anomaly; and if he will make a statement on the matter.
Written Answers. - Tyre Excise Duty.
444.
The excise duty on motor vehicle tyres is chargeable on home manufactured tyres at the rate of 5 per cent of the retail price and on imported tyres at the rate of 10 per cent of the value for customs purposes. These rates are designed to meet our obligations under EEC rules to ensure that the same burden of excise duty is borne by tyres irrespective of whether they are home-produced or imported from other member states.
Whilst the duty payable on any particular type of tyre depends on the relative retail and import prices, respectively, I am informed by the Revenue Commissioners that, in general, our practice is non-discriminatory as between imported tyres and home-manufactured tyres.
The feasibility of a restructuring of the duty is under examination at present in response to representations by the EEC Commission, which is concerned that imported tyres should enjoy no less favourable tax treatment than that enjoyed by tyres produced within the State.