Dáil Éireann debate -
Thursday, 17 Dec 1998

Vol. 498 No. 6

Written Answers - Vehicle Registration Tax.

Willie Penrose

Question:

119 Mr. Penrose asked the Minister for Finance the basis on which he decided to increase vehicle registration tax payable on cars in excess of 1.4 litres; the extra amount this will cost purchasers of new cars with capacities of 1.6 litres, 1.7 litres, 1.8 litres, 1.9 litres, 2.0 litres, 2.2 litres and 2.5 litres; if his attention has been drawn to fact that the proposed increase is adding an average £600 to the price of a family car; and if he will make a statement on the matter. [28274/98]

Minister for Finance (Mr. McCreevy)

I refer the Deputy to my answers to a series of questions relating to vehicle registration tax given on Tuesday, 15 December 1998.

Some 57 per cent of vehicles are not affected at all by the changes and it is not correct that the average increase is £600 on the price of a family car.

I am informed by the Revenue Commissioners that, based on an analysis of VRT payments up to the end of October 1998, the increase in the rates of VRT are as set out below. The table is based on average open market selling prices for vehicles in a particular band.

Engine Size (ccs)	Average Increase (£)
0 — 1400	No increase
1401 — 1500	443
1501 — 1600	490
1601 — 1700	526
1701 — 1800	610
1801 — 1900	541
1901 — 2000	630
2001 — 2100	2,104
2101 — 2200	2,604
2201 — 2300	3,293
2301 — 2400	3,500
2401 — 2500	3,414

I would like to inform the Deputy that the VRT figures for 1998 to date show that 57 per cent of new cars sales are in the up to 1,400 cc bracket. A further 39 per cent are in the 1,401 to 2,000 bracket and the remaining 4 per cent are in the 2,001+ bracket.