Vol. 492 No. 7
187 Mr. U. Burke asked the Minister for Finance the plans, if any, he has to reduce vehicle registration tax in his next budget in view of the fact that the total tax take on a motor vehicle is 57 per cent, the highest in Europe; and if he will make a statement on the matter. [15064/98]
Vehicle registration tax on cars was reduced to 22.5 per cent and 28 per cent, from 23.2 per cent and 29.25 per cent, respectively in the last budget. Value added tax on cars is at the standard VAT rate of 21 per cent. Taken together, these taxes account for approximately 35 per cent of the retail price of a car, not the figure of 57 per cent, as quoted by the Deputy.
Any further changes on taxes on goods and services, including those applying to motor vehicles, are a matter for consideration in the budget.
