Dáil Éireann díospóireacht -
Thursday, 17 Dec 1998

Vol. 498 No. 6

Written Answers - Vehicle Registration Tax.

Ivor Callely

Ceist:

55 Mr. Callely asked the Minister for Finance the level of vehicle registration tax on motor cars in Ireland and comparison figures for EU counterparts; the EU proposals in vehicle registration tax harmonisation; the measures, if any, required for Ireland to achieve these; and if he will make a statement on the matter. [28017/98]

Minister for Finance (Mr. McCreevy)

As the Deputy is aware from my budget speech, the levels of vehicle registration tax will be restructured with effect from 1 January 1999 to the following three-band system in place of the current twoband system:

Engine Capacity	Rates with effect from 1 January 1999
0 — 1,400 ccs	22.5 per cent (no change)
1,401 — 2,000 ccs	25.0 per cent (increase from 22.5 per cent)
2,001 + ccs	30 per cent (increase from 22.5 per cent for cars up to 2,500 ccs and increase from 28 per cent for cars 2,501 cc and over)

As the Deputy will appreciate, I have no responsibility for vehicle registration taxes applicable in member states. Vehicle registration taxes of one form or other are applied in some member states. These taxes are operated in a variety of ways and as such are not directly comparable. Some states' taxes are based on cc while others are based on fuel consumption; Germany, France, Luxembourg, Sweden and the UK do not charge VRT.

The question of the harmonisation of vehicle registration taxes is a matter for the EU Commission in the first instance. I am not aware of Commission proposals in this regard.