Vol. 545 No. 4
206 Mr. Deasy asked the Minister for Finance the tax element of car prices; the way in which this compares with the EU; and if there are proposals to have harmonisation throughout the European Community in this regard; and if he will make a statement on the matter. [30666/01]
The tax element of car prices incorporates VAT at the standard rate and VRT at the following rates: cars up to 1,400 ccs – 22.5%; cars 1,401 to 2,000 ccs – 25%; cars over 2,001 ccs – 30%. VAT applies at the standard rate on all new motor vehicles in each EU member state. This ranges from 15% to 25%, with Ireland having a standard rate of 20%. There are no plans to harmonise the rate of VAT applying to motor vehicles in the EU.
EU member states in many cases apply various other taxes at varying rates to vehicles, based on registration or other criteria. In some cases these rates exceed the rates of vehicle registration taxes applied in Ireland. There are no general proposals agreed by the EU Commission which provide for rate harmonisation in this area.
