Thursday, 19 September 2019

Questions (58, 67)

Michael Healy-Rae


58. Deputy Michael Healy-Rae asked the Minister for Finance the proposals in place for the motor industry and changing vehicle registration tax (details supplied); and if he will make a statement on the matter. [37969/19]

View answer

Brendan Smith


67. Deputy Brendan Smith asked the Minister for Finance his plans to widen the VRT bands as recommended at EU level in view of the proposed introduction of a new CO2 test procedure for cars; and if he will make a statement on the matter. [38195/19]

View answer

Written answers (Question to Finance)

I propose to take Questions Nos. 58 and 67 together.

The European Commission did not recommend widening the CO2 bands within the VRT regime. It did state that it is for Member States to decide when and how to adjust national car taxation schemes in light of the introduction of the WLTP emissions test. It further stated that the introduction of WLTP does not necessarily result in higher car taxes, if the adjustment of national car taxation schemes takes account of the expected increase in CO2 emissions under WLTP.

The Government's Climate Action Plan calls for VRT to be recalibrated in light of recent emissions standards. That means that the environmental rationale which underpins the tax needs to be strengthened.

Any changes to the VRT rates and bands structure will be subject to Budget decisions.