Dáil Éireann Debate, Tuesday - 16 November 2004
178 Mr. G. Mitchell asked the Minister for Finance the amount of taxes and duties levied by the Government and the taxes and duties levied by the Italian Government on a model of car (details supplied); if he has satisfied himself that this explains the difference for the price of the same model of car in Rome and the same model of car in Dublin; and if he will make a statement on the matter. [28557/04]
View answerThe rate of vehicle registration tax, VRT, chargeable in the State on a vehicle with an engine size of less than 1,400 cc is 22.5% of the open market selling price, OMSP. The rate of value added tax, VAT, on a new vehicle in the State is 21%, chargeable on the invoice price. OMSP means the price inclusive of all taxes and duties that a vehicle may reasonably be expected to fetch on a first arm's-length sale in the open market in the State, by retail.
Vehicle tax comparisons across the EU are particularly difficult due to different regimes in place in member states. Under EU law, the standard rate of VAT applies to cars, and currently this rate may not be less than 15%. EU states do apply other taxes to vehicles such as VRT in Ireland, the rates for which are set in the member states.
According to the 2003 tax report of the European Automobile Manufacturers Association, VRT in Italy, known as IPT, is chargeable at the rate of 2%, while the rate of VAT is 20%. Any differentials in the tax exclusive price of vehicles in different member states do not come within the remit of my Department.
