Dáil Éireann debate -
Tuesday, 15 Dec 1998

Vol. 498 No. 4

Written Answers. - Vehicle Registration Tax.

Michael Ring

Question:

277 Mr. Ring asked the Minister for Finance if he will postpone the restructuring of the vehicle registration tax system until March 1999 or later in view of the fact that many garages have already agreed on a sale price for new 1999 registration cars with their customers. [27688/98]

Minister for Finance (Mr. McCreevy)

As the Deputy is aware, the House approved a resolution on budget night to implement the new rates of vehicle registration tax, with effect from 1 January 1999.

I have no plans to introduce an amendment to that Resolution.

I believe that the overall package of measures announced in my budget, particularly in relation to income tax and corporation tax will help to stimulate growth in employment in all sectors, including that of the motor industry, which has been experiencing considerable growth in car sales.

I would like to inform the Deputy that the VRT figures for 1998 to date show that 57 per cent of new car sales are in the up to 1,400 cc bracket. These sales are not affected by the buget announcement. A further 39 per cent of new car sales are in the 1,401 to 2,000 cc bracket. These face a price rise of 3.3 per cent. Only 4 per cent are in the 2,001 plus cc bracket which face a price rise up to 10.7 per cent. Most manufacturers have models below 1,600 ccs, exceptions being manufacturers of luxury and sports car marques.

I have been informed by the Revenue Commissioners, who have responsibility for the administration of the vehicle registration tax, that the average increase in VRT in respect of 1,600 cc motor cars is in the region of £468 which, given the lower rates of interest for borrowers, could not be deemed excessive in the context of the overall price of a new motor car.

Minister for Finance (Mr. McCreevy)

I am informed by the Revenue Commissioners that the information requested by the Deputy is as follows. The figures shown cover motor vehicle excise duty up to 1992 and vehicle registration tax from 1993 onwards. The number of cars registered over the past ten years together with the yield from cars is also shown for the information of the Deputy.

Year	Amount (£M)	No. of Cars	Yield from Cars (£M)
1988	178.3	69,745	162.7
1989	237.9	86,594	213.4
1990	260.9	99,224	233.5
1991	208.6	85,521	190.5
1992	189.2	78,162	183.1
1993	222.8	79,275	216.4
1994	270.9	115,694	262.5
1995	288.8	125,029	279.6
1996	353.5	155,374	344.9
1997	395.8	172,659	386.4
1998	452.6	169,988	442.2
to end October