Vol. 486 No. 6
231 Mr. Gormley asked the Minister for the Environment and Local Government the proposals, if any, he has to introduce reduced levels of motor tax and other financial incentives for public and private transport vehicles, including taxis, which use cleaner fuels with fewer harmful emissions, in view of his recent statement at the launch of the new local government funding system that he will be looking at measures for the greening of motor tax rates. [3407/98]
The changes planned in motor tax for public service vehicles are the first phase of a "greening" of motor taxation rates and will involve substantial reductions in motor tax for categories of vehicles used as public transport vehicles which include buses and taxis. These reductions will come into effect when the legislation giving effect to the new local government funding system becomes operative later this year. The possibility of further "greening" motor tax rates to take account of developments at EU level on the taxation of heavy goods vehicles and possibilities for further differentiation of tax rates against heavier polluting vehicles is being examined in my Department.
