asked the Minister for Finance the composite rate of tax applying to purchases of cars and other motor vehicles; and the value of revenue raised in 1988 from these taxes.
65.
Written Answers. - Motor Vehicle Tax Revenue.
64.
asked the Minister for Finance the breakdown of the composite tax revenue from car purchases in 1988, distinguishing the amount raised from (1) cars up to 1,000 cc (2) cars over 1,000 cc and up to 1,500 cc (3) cars over 1,500 cc and up to 2,000 cc and (4) cars over 2,000 cc.
It is proposed to take Questions Nos. 64 and 65 together.
I assume the Deputy's questions relate to excise duty and VAT on cars and other motor vehicles (excluding motor cycles). The information requested by the Deputy insofar as it is available is provided in the following table:
Excise duty and VAT on cars and other motor vehicles
|
Type of vehicle¹ |
Composite rate of excise duty and VAT as a percentage of the retail price |
Estimated yield from excise duty and VAT in 1988 |
|
% |
£m |
|
|
Category A motor vehicles |
||
|
(i) exceeding 2012 cc. |
44.7² |
20 |
|
(ii) Other |
41.7² |
290 |
|
Categry B motor vehicles |
6.5³ |
15³ |
¹The information given represents the only breakdown available for excise duty purposes. Category A motor vehicles consist mainly of private cars and minibuses. The term "Category B" covers all other motor vehicles.
²VAT is charged at the rate of 25 per cent on the VAT-exclusive sale price of the vehicle, giving a rate of 20 per cent on the VAT inclusive price. Excise duty is charged at the rate of 24.7 per cent (for vehicles exceeding 2012 cc) or 21.7 per cent (other vehicles) of the recommended retail list price of the vehicle.
³In so far as VAT is concerned there is no reliable information available on which to base an estimate of receipts from Category B vehicles. However, VAT-registered persons are entitled to a deduction in their returns from VAT borne on business purchases of motor vehicles (other than cars and motor-cycles), and this would very significantly reduce the VAT yield from such vehicles. Therefore the rate and yield shown for Category B vehicles relate only to excise duty.
66.
asked the Minister for Finance the rate of VAT applying and the revenue raised in 1988 from (a) vehicle repairs and servicing and (b) vehicle parts; and whether the relationship between these two sums suggests that a large proportion of vehicle repair and servicing is in the black economy.
I refer the Deputy to my reply yesterday to his similar question on the same subject. As no breakdown is available along the lines requested I am not in a position to comment further on the Deputy's suggestion.