asked the Minister for Finance if he is aware of the "Axe the Tax" campaign; if he intends to respond officially to it; his views on the contention of people involved in the campaign that it is most unfair that combined taxes add 71 percentage to the basic price of a small family car and 161 percentage to the basic price of a litre-gallon of petrol and if he will make a statement on the matter.
Written Answers. - Taxes on Motoring.
84.
I am aware of the campaign. I accept that taxes on motoring are high but this is unavoidable in present budgetary circumstances.
In the course of the Committee Stage debates in the Houses of the Oireachtas on the Finance Bill, 1986, I made it clear that my taxation policy was to maximise the employment content of this country in the motor industry. Accordingly, the emphasis in taxation has been on the removal of duties from spare parts and tyres and tubes.
I would point out to the Deputy that motor car duty was reduced to offset the VAT increase on 1 March 1986. This was the only dutiable category of goods to benefit in this way.