Dáil Éireann debate -
Tuesday, 2 Mar 1993

Vol. 427 No. 2

Written Answers. - Government Taxes on Cars.

Enda Kenny

Question:

60 Mr. E. Kenny asked the Minister for Finance the amount of Government taxes taken on all new cars bought in the Republic of Ireland for each of the last five years, the average differential in car prices between the Republic and Northern Ireland; the proposals, if any, he has to reduce Government taxes on new cars sold in the Republic following the Single European Market, and if he will make a full statement on the matter.

Minister for Finance (Mr. B. Ahern)

The tax receipts (excise and VAT) are as follows:

Year	Net Receipts
	£m
1988	305.7
1989	395.7
1990	403.1
1991	321.5
1992 (Provisional)	308.5

As VAT returns are not completed in a manner which would enable the yield from particular items to be identified, the VAT yield included in the net receipts figures above has been estimated.

As for cross-Border price differentials, the position is that, as price controls do not operate on motor vehicles here there is no information available on which such price comparisons could be based.

As the Deputy is probably aware, Vehicle Registration Tax replaced the border-related excise duty on motor cars on 1 January last. The indications are that, in the majority of cases, the tax charge on new vehicles is lower under the VRT system than under the excise system thereby providing scope for dealers to reduce their prices. I have no plans, at present, to make any changes in relation to the taxation of new cars.