Dáil Éireann debate -
Tuesday, 15 Feb 2000

Vol. 514 No. 3

Written Answers. - Vehicle Registration Tax.

Michael Joe Cosgrave

Question:

167 Mr. Cosgrave asked the Minister for Finance if, in view of the conversion from car duty to vehicle registration tax since the Single European Act, 1991, a former Minister (details supplied) attended a meeting in Austria and received written permission from the EU to change to car duty from vehicle registration tax; if written permission was received for this action; if so, if he will produce a copy; his views on whether motorists have to pay an inflated price to replace their old cars after failing tests due to vehicle registration tax; his views on whether this arrangement is illegal in cases where written permission was not received; and if he will make a statement on the matter. [3964/00]

Minister for Finance (Mr. McCreevy):

I wish to inform the Deputy that vehicle registration tax has applied with effect from 1 January 1993 and replaced the previous motor vehicle excise duty which was abolished under Single Market rules. While the EU Commission is well aware of the existence of this tax, written permission was not sought nor was it required from the Commission for its imposition. The relevant files in my Department have been examined and no record of the meeting in Austria referred to by the Deputy has been found. Austria became a member of the European Union on 1 January 1995, several years after VRT was introduced.

I have no responsibility for the tax exclusive prices which manufacturers charge for the various motor vehicle models. Ireland is not the only member state which charges a tax on vehicle registration, some at higher rates than that which Ireland imposes.