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Dáil Éireann debate -
Tuesday, 10 Dec 2002

Vol. 559 No. 1

Written Answers. - Vehicle Registration Tax.

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]

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

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