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Tax Code.

Dáil Éireann Debate, Wednesday - 17 November 2004

Wednesday, 17 November 2004

Questions (157, 158, 159)

Paul McGrath

Question:

197 Mr. P. McGrath asked the Minister for Finance the various taxes that are collected on the sale of a new car and to compare these to the corresponding taxes in the UK. [28952/04]

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Written answers

In Ireland a new vehicle is liable to vehicle registration tax, VRT, value added tax, VAT, and in the case of a vehicle imported from outside the European Union, common customs tariff duty, CCT.

VRT is calculated on the open market selling price, OMSP, of a vehicle, which is the retail price, inclusive of all taxes and duties, that a vehicle may reasonably be expected to fetch on a first arm's length sale on the open market in the State. The rates of VRT chargeable on an individual vehicle are determined by its engine size. The following table shows the engine size bands and the corresponding VRT rate.

Private Cars — Category A.

Category

Cars up to 1,400 ccs

(A1)

22.5% of OMSP

Cars 1,401 to 1,900 ccs

(A2)

25% of OMSP

Cars 1,901 +

(A3)

30% of OMSP

VAT is chargeable at 21% of the retail price exclusive of VRT and VAT. CCT is charged at10% of the cost of the vehicle inclusive of charges for freight and insurance. I understand that in the UK all new cars are liable to VAT at 17.5%, and if imported from outside the EU, CCT duty at 10%. VRT or an equivalent is not payable on cars in the UK.

Paul McGrath

Question:

198 Mr. P. McGrath asked the Minister for Finance the amount of tax levied on a new car below 1.9 L retailing at €12,000, €15,000, €18,000, €21,000 and €25,000; and the tax levied on a new vehicle over 1.9 L retailing at €30,000, €40,000 and €50,000. [28953/04]

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VRT is applied on the open market selling price, OMSP, of the vehicle which is the price, inclusive of all taxes and duties, which the vehicle would be reasonably expected to fetch on a first arm's length retail sale in the State. The information requested is as follows:

Category A1 — Engine cc less than or equal to 1400 cc

OMSP

12,000.00

15,000.00

18,000.00

21,000.00

25,000.00

VRT Rate

22.5%

22.5%

22.5%

22.5%

22.5%

VRT Amount

2,700.00

3,375.00

4,050.00

4,725.00

5,625.00

VAT Amount

1,614.05

2,017.56

2,421.07

2,824.59

3,362.60

Total Tax

4,314.05

5,392.56

6,471.07

7,549.59

8,987.60

Category A2 — Engine cc exceeding 1400 cc and not exceeding 1900 cc

OMSP

12,000.00

15,000.00

18,000.00

21,000.00

25,000.00

VRT Rate

25.0%

25.0%

25.0%

25.0%

25.0%

VRT Amount

3,000.00

3,750.00

4,500.00

5,250.00

6,250.00

VAT Amount

1,561.98

1,952.48

2,342.98

2,733.48

3,254.13

Total Tax

4,561.98

5,702.48

6,842.98

7,983.47

9,504.13

Category A3 — Engine cc exceeding 1900 cc

OMSP

30,000.00

40,000.00

50,000.00

VRT Rate

30.0%

30.0%

30.0%

VRT Amount

9,000.00

12,000.00

15,000.00

VAT Amount

3,644.63

4,859.50

6,074.38

Total Tax

12,644.63

16,859.50

21,074.38

Paul McGrath

Question:

199 Mr. P. McGrath asked the Minister for Finance his views on the 57% increase in the importation of second hand vehicle with engine size over 1.9 litre; and if he will make a statement on the matter. [28954/04]

View answer

I am advised by the Revenue Commissioners that over 170,000 cars have been registered in the State up to the end of October 2004, including cars which are exempt from VRT. Of these, 7,242, or some 48% more than the same period last year, were second hand imports, with engine sizes over 1.9 litres. While it is impossible to determine with any certainty, it is reasonable to speculate that personal choice as to make and model and normal market forces have contributed to the increase. Data are not captured by the Revenue Commissioners in relation to the engine size of commercial vehicles.

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