Dáil Éireann debate -
Wednesday, 19 Nov 1997

Vol. 483 No. 1

Written Answers. - Tax Yields.

Ivor Callely

Question:

163 Mr. Callely asked the Minister for Finance the value of vehicle registration tax generated for each of the years from 1990 to 1996; if he will give a breakdown for each year in this regard; if he will give details of other taxes on car sales for the same period; if these levels of tax are similar to our EU counterparts; and if he will make a statement on the matter. [19785/97]

Minister for Finance (Mr. McCreevy)

The information requested by the Deputy is set out in the following table. This includes details of motor vehicle duty (MVED) which was collected from 1990 to 1992; vehicle registration tax (VRT) which was collected from 1993 onwards and value added tax which was payable throughout the entire period.

Year	MVED/VRT¹	VAT²	Total
	£m	£m	£m
1990	260.9	200	460.9
1991	208.6	152	360.6
1992	189.3	153	342.3
1993³4	222.7	92 5	314.7
1994	295.2	129	424.2
1995	318.2	165	483.2
1996	404.9	212	616.9

¹ In addition to cars the figures shown for MVED and VRT include MVED collected on commercial vehicles up to 1992 and VRT collected on certain car derived vans (category B vehicles) registered between 1993 and 1996.

² VAT Figures shown are estimates as VAT payment statistics do not identify particular goods or services.

³ Figures for 1993 include a carryover of £7.8 million MVED and £6 million VAT from 1992.

4 These are gross figures from which the following repayments were made: £18.1 million (1993); £24.3 million (1994); £29.4 million (1995); £51.3 million (1996). These were made under the various VRT repayment schemes i.e leasing, demonstration, short-term car hire, disabled drivers and scrappage scheme (operable from 1 July 1995).

5 The amount of VAT shown for 1993 reflects the abolition of VAT at point of entry and the fact that VAT collected covers the period January to October 1993.

In view of the variety of methods of calculation and the different rates charged it is not possible to provide a detailed account of the level of taxation applied to cars in other European countries. However, a background paper issued by the European Commission DGXXI entitled "Vehicle Taxation in the European Union 1997" indicates the following: all 15 member states charge VAT on new cars — the rate varies from 15 per cent (Germany and Luxembourg) to 25 per cent (Denmark and Sweden); Germany, Luxembourg, Sweden and the United Kingdom do not charge registration tax while in France and Italy the tax is of a nominal nature; the basis on which the registration tax is charged varies in the case of the remaining nine member states e.g.

—in Austria the tax has regard to the level of fuel consumption;

—in Belgium tax is charged on the basis of the cubic capacity of the engine with a discount allowed for the age of the car;

—the remaining countries charge tax on the basis of the selling price of the car either inclusive or exclusive of the registration tax and in some cases the rate also varies depending on the size of the engine;

the highest levels of registration tax are applied in Denmark, Finland, Greece and Portugal.