Thursday, 24 September 2020

Questions (90, 91)

Brendan Griffin

Question:

90. Deputy Brendan Griffin asked the Minister for Finance his views on a matter (details supplied); and if he will make a statement on the matter. [26004/20]

View answer

Brendan Griffin

Question:

91. Deputy Brendan Griffin asked the Minister for Finance his views on a matter as outlined in correspondence (details supplied); and if he will make a statement on the matter. [26018/20]

View answer

Written answers (Question to Finance)

I propose to take Questions Nos. 90 and 91 together.

Vehicle Registration Tax is charged on new cars or used imports registering in the State for the first time. The VRT reform option in the Tax Strategy Group paper sets out a mechanism for transitioning to the new road emissions test 'WLTP' and recalibrating the tax design in light of the more realistic emissions recorded. This is included as an action in the 2019 Climate Action Plan.

As set out in the TSG paper, the option presented would result in VRT rate decreases for low emission vehicles and increases for high emission vehicles. As per the VRT charging formula, the value of these increases or decreases would be determined by the emissions profile and the open market selling price of the car (OMSP).

Any changes to the VRT regime will be made in the context of Budget 2021. As the Deputy will be aware, it is a longstanding practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.