Tax Code

Dáil Éireann Debate, Tuesday - 4 December 2012

Tuesday, 4 December 2012

Questions (147)

Luke 'Ming' Flanagan

Question:

147. Deputy Luke 'Ming' Flanagan asked the Minister for Finance his views on whether vehicle registration tax is in compliance with the Treaty of Rome; in particular if he will consider Article 25 of the treaty to be fully complied with as it states that an excise or custom duty cannot be redesignated as a tax; and if he will accept that this may be the case as Ireland was given a derogation under Article 14 on import duty on vehicles up until 31 December 1992 when the vehicle registration tax was introduced; and if he will make a statement on the matter. [53918/12]

Written answers

Minister for Finance

I am advised by the Revenue Commissioners that Section 132 of the Finance Act, 1992 provided for the introduction, from 1 January 1993, of “a duty of excise, to be called vehicle registration tax”. I can assure the Deputy that the legislation in relation to vehicle registration tax is compatible with the provisions of the Treaty on European Union and the Treaty on the Functioning of the European Union. Vehicle registration tax is a feature of the tax system in 18 other Member States of the European Union.