Vol. 541 No. 2
375 Mr. Ring asked the Minister for Finance the plans he has to abolish VRT applicable to vehicles coming here from the UK; when legislation allowing for free movement of vehicles throughout Europe will be enacted; and if he will make a statement on the matter. [21427/01]
I have no plans to abolish vehicle registration tax – VRT. VRT is an important source of revenue for the Exchequer, especially given this Government's strategy of reducing other taxes such as income tax and corporation tax. VRT is payable on the first registration of a vehicle in the State and applies to both new and second hand cars. Despite what may be believed, Ireland is not the only member state which has a tax on vehicle registration. Eight other countries have a registration tax, including Denmark, Finland, Greece and Portugal, some at higher levels than apply in Ireland. These taxes are operated in a variety of ways, and as such, are not directly comparable with VRT as applied in Ireland. However, under EU rules, certain vehicles brought into the State on a temporary basis by tourists and visitors are exempted from the registration requirement. In addition, vehicles brought into the State by per sons transferring their residence here may be registered here without payment of VRT, subject to certain conditions, in particular relating to the length of time a vehicle has been owned and used abroad.
