Dáil Éireann Debate, Wednesday - 28 June 2023
50. Deputy Ivana Bacik asked the Minister for Finance if work is underway in his Department to review taxation rules in relation to sports utility vehicles and other large vehicles for personal use; if so, if those reviews will be published; and if he will make a statement on the matter. [31563/23]
View answerOfficials from the Department of Finance continue to monitor developments in the vehicle taxation area. New proposals are considered and current vehicle tax policies are kept under review as part of the Tax Strategy Group and Budgetary cycle. Going forward, it is possible that vehicle taxes may shift to weight-based in order to protect the vehicle tax base. Future options or proposals for vehicle tax developments are included in the TSG papers which are published by the Department each summer.
The Deputy should note that the existing tax structures for vehicles for personal use in the State currently have a very strong environmental rationale, with the more pollutant vehicles paying progressively higher rates of tax. Additionally, as many heavier vehicles currently on the market are more pollutant – with the exception of large Electric Vehicles - those heavier vehicles incur higher rates of tax, between Motor Tax, Vehicle Registration Tax and the Nitrogen Oxide Charge, and Benefit-in-Kind. Vehicle weight generally correlates with vehicle emissions, therefore within the existing tax system the heaviest internal combustion engine cars, such as sports utility vehicles, are already subject to higher rates of tax whereas lighter, more efficient cars are subject to lower rates of tax.
