asked the Minister for Finance the way in which he intends to implement the agreement made at the EC Council of Finance Ministers on 9 October 1989 that cars are to be taxed in the country where they are eventually registered; and the cost to the Exchequer of the proposed maximum 19 per cent excise rate.
Written Answers. - Tax on Cars.
46.
While agreement has been reached by the ECO/FIN Council that vehicles liable for registration will be subject to VAT in the country of destination, at the rate applicable in that country, detailed implementing arrangements have not yet been elaborated and agreed at Community level.
I am not clear on what the Deputy has in mind in the second part of his question. There is no proposal from the Commission for a maximum excise rate of 19 per cent. The Commission had proposed a standard VAT rate falling in the band 14 to 20 per cent. More recently, it put forward the idea of a minimum VAT standard rate of 15 per cent. No agreement has yet been reached on VAT or excise rates.