Vol. 557 No. 1
118 Mr. Deenihan asked the Minister for Finance the Government's policy in relation to the reduction in motor related taxes here, in view of the possible trend towards harmonisation of pre-tax car prices in the EU; and if he will make a statement on the matter. [15494/02]
I assume the Deputy is referring to the possible consequences of the recent change in the EU regulation governing competition in the car market in the EU, the so-called block exemption regulation. I consider that it is too early to speculate on the impact of this change on pre-tax car prices. The Deputy will be aware that VRT is an important source of revenue for the Exchequer, generating over €800 million per year. To replace this would require, for example, an increase of 2 percentage points in the standard rate of income tax.
Question No. 119 answered with Question No. 90.
