Dáil Éireann debate -
Wednesday, 10 Nov 1999

Vol. 510 No. 4

Written Answers. - Vehicle Registration Tax.

Ivor Callely

Question:

127 Mr. Callely asked the Minister for Finance the EU proposals for tax harmonisation; the EU countries which are supportive of this harmonisation; the implications of this tax harmonisation on vehicle registration taxes; and if he will make a statement on the matter. [22779/99]

Minister for Finance (Mr. McCreevy)

In December 1998 the Vienna European Council called for agreement to be reached on a tax package by the Helsinki European Council in December 1999. This commitment was reaf firmed at the Cologne Summit in June 1999. The three key items of the tax package are (i) a code of conduct on business taxation, (ii) proposals for a directive on the taxation of income from savings, and (iii) proposals for a directive on the taxation of interest and royalty payments between companies.

Discussions are continuing on the tax package with a view to meeting the deadline for a report of the Helsinki European Council, however there are still outstanding items.

Improving tax policy co-ordination in the EU, which Ireland supports, is not to be confused with harmonisation of tax rates which is not on the EU agenda. This was confirmed at the Vienna European Council, the agreed conclusions of which stated that "co-operation in the tax policy area is not aiming at uniform tax rates and is not inconsistent with fair tax competition, but is called for to reduce the continuing distortions in the single market, to prevent excessive losses of tax revenue or to get tax structures to develop in a more employment-friendly way".

Finally, with regard to the Deputy's question on vehicle registration tax, I am not aware of any harmonisation proposals at EU level in this regard nor are there any proposals from Ireland in this regard.