Dan Neville
Question:172 Mr. Neville asked the Minister for Finance the plans he has to change the vehicle registration tax on imported second-hand jeeps. [8733/01]
Written Answers. - Vehicle Registration Tax.
Vehicle registration tax, VRT, is payable on the first registration of a vehicle in the State and applies to both new and second-hand vehicles, including jeeps. The current Finance Bill is amending the definition of category B vehicles. The rate of VRT for category B vehicles is 13.3% of the open market selling price. Jeep-derived vans and similar vehicles that have a gross vehicle weight below 2,520 kilograms or a wheel base below 2.450 metres will be classified as category B. Jeep-derived vans and similar vehicles exceeding both of these thresholds will be classified as category C vehicles. A flat rate of £40 VRT applies to this category. Once the Finance Bill is passed, the relevant amendment will have effect from a date to be specified by ministerial order. I have no further plans to amend the legislation in relation to vehicle registration tax.
Question:
173 Mr. Coveney asked the Minister for Finance if he will address the issues raised in correspondence (details supplied) with regard to the vehicle registration tax on commercial vehicles. [8842/01]
The correspondence in question relates to the classification of commercial vehicles for vehicle registration tax, VRT, purposes.
The 1992 Finance Act defines a category B vehicle as a vehicle, other than a category A vehicle, a motor-cycle or a listed vehicle, which is of not more than three tonnes unladen weight and which has a roofed area to the rear of the driver's seat, the floor of which is less than two metres in length when measured in such manner as may be approved by the Revenue Commissioners. The rate of VRT for a category B vehicle is 13.3% of the open market selling price, OMSP, of the vehicle. A category C vehicle means a vehicle other than a category A vehicle, a category B vehicle or a motor-cycle – Finance Act, 1992. The rate of VRT for a category C vehicle is a flat rate of £40.
There have been disputes over the categorisation of various models into category B/category C since 1992. It is the desire to qualify as a £40 vehicle for tax purposes that is at the root of the problem. It was brought to my attention that the legislation as it stands in this regard may be giving rise to inconsistencies. The issue has been examined at length by the Revenue Commissioners. I also understand that Revenue have had a number of meetings with the motor trade regarding the classification of commercial vehicles for VRT purposes. Arising from this process, an amendment to the existing VRT legislation is included in the Finance Bill amending the definition of category B vehicles. Car-derived vans, jeep-derived vans and similar vehicles that have a gross vehicle weight below 2,520 kilograms or a wheel base below 2.450 metres will be classified as category B. Car-derived vans, jeep-derived vans and similar vehicles exceeding both of these thresholds will be classified as category C vehicles. Once the Finance Bill is passed, the relevant amendment will have effect from a date to be specified by ministerial order.
The figures for the numbers of new vehicles registered in categories B and C for the years 1993 to 2000 are set out below:
|
Year |
Category B |
Category C |
|
1993 |
2,843 |
11,886 |
|
1994 |
3,375 |
14,553 |
|
1995 |
3,448 |
16,362 |
|
1996 |
3,080 |
19,804 |
|
1997 |
3,222 |
23,439 |
|
1998 |
3,488 |
31,948 |
|
1999 |
3,615 |
39,525 |
|
2000 |
3,345 |
48,645 |
I understand from the Revenue Commissioners that it would not be possible to state how many of the category C vehicles would have been classified as category B vehicles if the classification criteria were different.