Bernard J. Durkan
Question:203 Mr. Durkan asked the Minister for Finance the levels of VRT currently applicable in each country in the eurozone; and if he will make a statement on the matter. [25916/02]
Vol. 559 No. 1
203 Mr. Durkan asked the Minister for Finance the levels of VRT currently applicable in each country in the eurozone; and if he will make a statement on the matter. [25916/02]
Ireland is one of ten member states that apply VRT. The other nine are Belgium, Denmark, Spain, Greece, Italy, Netherlands, Austria, Portugal and Finland. These taxes are operated in a variety of ways and are not directly comparable with VRT as applied in Ireland. Many other countries also tax fuel at a higher rate, including the UK. All these factors must be borne in mind in making comparisons.
VRT in Ireland, as in a number of other member states, is a significant source of tax revenue to fund necessary public services. In Ireland VRT generates over €800 million per year. To replace this would require, for example, an increase of over 2 percentage points in the standard rate of income tax.
The following table outlines the VRT and registration fees applicable in each member state. It is based on a study carried out by COWI Consulting Engineers and Planners, as in November 2001 for the EU Commission.
Member State |
Registration Tax |
Registration Charge |
Belgium |
Tax base is cm³Rate is differentiated with cm³Range from €62 to €4,958 |
€62 |
Germany |
None |
€26 |
Denmark |
Tax base is price including VATRate is differentiated with price 105% up to €7,122 and 180% of remainder |
€144 |
Spain |
Tax base is base price excluding VATRate is differentiated with cm³7% for small cars 12% for bigger cars |
€62 |
Greece |
Tax base is base price excluding VATRate is differentiated with cm³Range from 7% to 88% |
None |
France |
None |
Average €25 x horse power |
Italy |
Fixed amount €151 |
€118 |
Ireland |
Tax base is base price excluding VATRate is differentiated with cm³22.5% – up to and including 1,400 cm³25% – 1,401 cm³ to 1,900 cm³ inclusive30%-1,901 cm³ and above |
None |
Luxembourg |
None |
€29 |
Netherlands |
Tax base is base price excluding VATRate is differentiated between petrol/dieselPetrol: 45.2% €1,540Diesel: 45.2% + €350 |
€41 |
Austria |
Tax base is base price excluding VATRate is differentiated with fuel consumptionMaximum rate is 16% |
1€09 |
Portugal |
Tax base is cm³ |
€25 |
Finland |
Tax base is CIF price excluding VATRate is 100%Fixed deduction in tax is €774 |
None |
Sweden |
None |
None |
United Kingdom |
None |
€40 |