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Tax Yield.

Dáil Éireann Debate, Wednesday - 29 June 2005

Wednesday, 29 June 2005

Questions (184)

Michael Lowry

Question:

187 Mr. Lowry asked the Minister for Finance the number of cars registered each year from 1997 to 2005; the cost of VRT for each class of car; the amount of finance raised under each car class each year from 1997 to 2005; and if he will make a statement on the matter. [23155/05]

View answer

Written answers

I am advised by the Revenue Commissioners that the available information on the number of cars registered and the receipts of VRT for each car class, A1, A2 and A3 for the years 1997 to 2005 is shown in Appendix 1. Included at Appendix 2 are the estimated VAT receipts from cars for the period 1997 to 2005. The amount of VAT collected cannot be identified by car class from within the overall VAT yield as the information furnished on VAT returns does not require this to be identified. Appendix 3 outlines the rates of duty for VRT for cars for the period 1997 to 2005.

While the Exchequer benefits generally from revenues generated by the motor sector, the motorist has also benefited from the substantial investment in the roads network over the last number of years through the national development plan. In 2004, spending on national and non-national roads totalled over €1.65 billion. This is set to increase to approximately €1.8 billion this year. Indeed, since 1997 this Government has spent over €8.8 billion on roads.

The Government has prioritised tax reductions on income earned by employees, in preference to other areas, and this policy has helped create record employment levels.

Appendix 1: Motor Vehicle Registration Tax — Gross Registrations and Net Receipts.

Category A1

Category A2

Category A3

Total A1, A2 and A3

Cars up to 1400 cc

Cars 1401-2000 cc(1)

Cars over 2000 cc(1)

Total

Total

Total

Total

Year

Reg.

Reg.

Reg.

Reg.

1997

New

135,812

412,848,994

1,078

15,927,786

136,890

428,776,780

Used

43,991

58,156,836

837

3,677,206

44,828

61,834,041

Total

179,803

471,005,829

1,915

19,604,992

181,718

490,610,821

1998

New

144,706

512,708,640

1,437

22,933,063

146,143

535,641,703

Used

43,605

59,053,103

1,309

6,102,114

44,914

65,155,217

Total

188,311

571,761,743

2,746

29,035,177

191,057

600,796,919

1999

New

111,834

304,581,863

58,319

318,735,927

4,689

68,950,941

174,842

692,268,731

Used

15,403

15,657,068

18,432

31,956,464

3,657

14,573,392

37,492

62,186,924

Total

127,237

320,238,930

76,751

350,692,392

8,346

83,524,333

212,334

754,455,656

2000

New

150,795

425,673,696

74,387

419,347,706

6,357

100,120,378

231,539

945,141,780

Used

9,716

9,461,993

12,195

18,167,826

2,982

11,391,308

24,893

39,021,127

Total

160,511

435,135,689

86,582

437,515,533

9,339

111,511,685

256,432

984,162,907

2001

New

87,359

252,219,795

70,859

391,563,661

6,956

106,869,490

165,174

750,652,946

Used

5,494

3,574,593

8,305

9,572,046

2,341

8,179,692

16,140

21,326,332

Total

92,853

255,794,389

79,164

401,135,707

9,297

115,049,182

181,314

771,979,278

2002

New

78,138

236,090,266

70,890

405,488,685

7,285

114,757,314

156,313

756,336,265

Used

3,906

2,019,110

7,280

9,575,377

2,652

9,195,392

13,838

20,789,879

Total

82,044

238,109,376

78,170

415,064,062

9,937

123,952,706

170,151

777,126,144

2003

New

72,217

234,971,315

50,678

288,889,026

22,511

254,668,283

145,406

778,528,624

Used

3,877

2,389,244

4,978

7,519,007

5,773

18,275,929

14,628

28,184,180

Total

76,094

237,360,559

55,656

296,408,033

28,284

272,944,212

160,034

806,712,804

2004(2)

New

70,707

238,628,177

58,828

343,788,136

24,962

296,091,017

154,497

878,507,330

Used

6,046

4,511,483

8,715

18,130,459

8,812

30,725,134

23,573

53,367,076

Total

76,753

243,139,660

67,543

361,918,595

33,774

326,816,151

178,070

931,874,406

2005(2)

New

54,426

199,892,631

47,772

293,173,061

20,572

260,869,962

122,770

753,935,654

Jan-May

Used

4,145

3,621,149

6,974

16,240,595

5,591

22,049,560

16,710

41,911,304

Total

58,571

203,513,780

54,746

309,413,656

26,163

282,919,522

139,480

795,846,958

Note: The registrations shown are gross i.e. they include those vehicle registrations which are exempt from VRT.

Note (1). With effect from 1 Jan 2003 motor cars with an engine capacity greater than 1901cc and less than 2000cc were registered in Category A3.

Note (2). VRT Receipts for 2004 and 2005 are Provisional.

With regard to the figure for VRT receipts for Jan to May 2005, due to a deferment arrangement some of the VRT will not accrue to the Exchequer account until later in the year. The actual amount receipted to the end of May in respect of motor cars is €666 million.

Appendix 2: Estimated VAT Yield 1997 — 2005 on Cars —€ million.

1997

1998

1999

2000

2001

2002

2003

2004

2005

€m

€m

€m

€m

€m

€m

€m

€m

€m

Estimated VAT Yield(1)

290

375

427

562

422

430

431

480

493

Note (1). VAT Yield for 1997-2004 (inclusive) is estimated. 2005 VAT Yield is for the full year and is Provisional.

Appendix 3: Rates of Duty for V.R.T. for Cars.

Category

Year 1997

A1

Not Exceeding 2500cc

23.2% of chargeable value or £250, whichever is the greater

A2

Exceeding 2500cc

29.25% of chargeable value or £250, whichever is the greater

Year 1998

A1

Not Exceeding 2500cc

22.5% of chargeable value or £250, whichever is the greater

A2

Exceeding 2500cc

28.0% of chargeable value or £250, whichever is the greater

Year 1999-2001 inclusive

A1

Not Exceeding 1400cc

22.5% of chargeable value or £250, whichever is the greater

A2

Not Exceeding 2000cc

25.0% of chargeable value or £250, whichever is the greater

A3

Exceeding 2000cc

30.0% of chargeable value or £250, whichever is the greater

Year 2002

A1

Not Exceeding 1400cc

22.5% of chargeable value or €315, whichever is the greater

A2

Not Exceeding 2000cc

25.0% of chargeable value or €315, whichever is the greater

A3

Exceeding 2000cc

30.0% of chargeable value or €315, whichever is the greater

Year 2003 to date

A1

Not Exceeding 1400cc

22.5% of chargeable value or €315, whichever is the greater

A2

Not Exceeding 1900cc

25.0% of chargeable value or €315, whichever is the greater

A3

Exceeding 1900cc

30.0% of chargeable value or €315, whichever is the greater

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