asked the Minister for Finance if he is aware of the belief among many potential new car purchasers that the ending of restrictions on vehicle imports on 1 January 1985 will result in the harmonisation of car taxes in member states of the EEC with a consequential reduction in car prices in this country; and if he will make a statement on the matter with a view to avoiding the loss of excise duty and VAT revenue to the Exchequer in 1984 which would naturally follow if new car purchases were deferred.
Written Answers. - New Car Duty.
309.
I am aware that some persons believe that the ending of restrictions on vehicle imports on 1 January 1985 will result in a reduction in motor vehicle tax. However, the expiry on 1 January 1985 of the import restrictions on motor vehicles which this country has applied under the Motor Vehicles (Registration of Importers) Act, 1968, and Protocol 7 to the EEC Accession Treaty will not affect the level of taxation on cars.
This country's taxation of motor vehicles is, and will continue to be, a matter for decision at national level, subject to the general taxation rules laid down in the EEC treaty which prohibit, for example, discriminatory tax treatment of imports from other member states as compared with domestic production.