Seán Haughey
Ceist:379 Mr. Haughey asked the Minister for Finance the plans he has to reduce vehicle registration tax in the context of developments in the EU; and if he will make a statement on the matter. [21534/01]
Written Answers. - Vehicle Registration Tax.
I have no plans to reduce vehicle registration tax – VRT. VRT is an important source of revenue for the Exchequer, especially given this Government's strategy of reducing other taxes such as income tax and corporation tax. The yield from VRT in 2000 was £788.5 million. VRT is payable on the first registration of a vehicle in the State and applies to both new and second hand cars. Despite what may be believed, Ireland is not the only member state which has a tax on vehicle registration. Eight other countries have a registration tax, including Denmark, Finland, Greece and Portugal, some at higher levels than apply in Ireland. These taxes are operated in a variety of ways, and as such, are not directly comparable with VRT as applied in Ireland. The European Commission has stated that it intends to present a Communication on vehicle taxation in the EU before the end of the year.