Tax Yield.

Dáil Éireann Debate, Wednesday - 2 July 2008

Wednesday, 2 July 2008

Ceisteanna (101, 102, 103, 104, 105, 106)

Michael Ring

Ceist:

148 Deputy Michael Ring asked the Minister for Finance the tax take on a price range of vehicles (details supplied) in each of the past two years. [26258/08]

Freagraí scríofa

Minister for Finance (Deputy Brian Lenihan)

As the Deputy will be aware, the tax take on individual cars comprises VRT and VAT. The standard VAT rate of 21% applies to cars. The VRT liability for passenger cars ('category A' vehicles) is calculated as a percentage of the Open Market Selling Price (OMSP) of the car concerned. The OMSP is defined in Section 133 of the Finance Act 1992 and is the price, inclusive of all taxes and duties, which a vehicle may reasonably be expected to fetch on a first arm's length sale in the open market in the State by retail.

In the years 2006-2007, to which the question relates, the VRT rate was based on the engine size of a car. Cars were divided into 3 subcategories, referred to as A1, A2 and A3; based on the engine capacity of the vehicle. The categories of passenger car and associated VRT charges were:

Category A1 — up to 1,400cc — 22.5% of OMSP

Category A2 — 1,401 to 1,900cc — 25% of OMSP

Category A3 — over 1,900cc — 30% of OMSP

The basis of calculating VRT for cars changed on 1 July 2008; and VRT is now charged as a percentage of the OMSP on the basis of a car's Carbon Dioxide emissions.

I am informed by the Revenue Commissioners that the tax take for cars for a range of prices/OMSP between €15,000 and €45,000 as requested, is set out in the following table. The tax take is the same for each of the last two years.

Tax Take on Cars for a Range of Sample Prices/OMSP

Category	A1	A2	A3
Sample Price/OMSP (€)	(€)	(€)	(€)
15,000	5,393	5,702	6,322
20,000	7,190	7,603	8,430
25,000	8,988	9,504	10,537
30,000	10,785	11,405	12,645
35,000	12,583	13,306	14,752
40,000	14,380	15,207	16,860
45,000	16,178	17,107	18,967

Lucinda Creighton

Ceist:

149 Deputy Lucinda Creighton asked the Minister for Finance the amount of Revenue received by the Exchequer in each of the past five years in taxes associated with motoring, that is, VRT on cars, VRT on other vehicles, VAT on motor vehicles, VAT on repairs, VAT on fuels, tax on motor insurance, company car taxes, excise duty on petrol and diesel, road tolls and benefit in kind; and if he will make a statement on the matter. [26277/08]

Minister for Finance (Deputy Brian Lenihan)

I am informed by the Revenue Commissioners that the amounts of tax revenue collected from VRT on cars and other vehicles, the estimated VAT yield, and the tax revenue collected from Mineral Oil Tax on petrol and diesel, for the relevant periods, are set out in the following tables.

VRT Yield	2003	2004	2005	2006	2007 Prov.	2008 (Jan to May) Prov.
	€m	€m	€m	€m	€m	€m
Cars	806.7	930	1128.6	1257.5	1376.4	830.2
Other Vehicles	12.7	16	20.2	29.9	29.6	16
Total	819.4	946	1,148.80	1,287.40	1,406.00	846.2

Estimated VAT Yield	2003 Est.	2004 Est.	2005 Est.	2006 Est.	2007 Est.	2008 (Jan to May) Est.
	€m	€m	€m	€m	€m	€m
Motor Vehicles	431	480	559	599	657	402.5
Car Repairs	46	50	56	64	73	30.4
Petrol	296	342	393	440	465	222.0
Auto Diesel	32	38	46	53	57	29.0
Road Tolls	n/a	10	12	15	17	7.5
Total	805	920	1,066	1,171	1,269	691.4

Mineral Oil Tax	2003	2004	2005	2006	2007 Prov.	2008 (Jan to May) Prov.
	€m	€m	€m	€m	€m	€m
Petrol	853.8	970.7	1001.9	1026.4	1051.3	471.5
Auto Diesel	731.5	870.7	920.5	1016.7	1075.8	484.7
Total	1,585.3	1,841.4	1,922.4	2,043.1	2,127.1	956.2

The VAT yield from Oil Products and Motor Vehicles is estimated, as the information to be furnished on VAT returns does not require the yield from a particular sector or sub-sector of trade to be identified. The figures provided for the VAT yield in 2008 are estimates of the amount of VAT yield that would be generated by the volume of clearances of oil products and the number of cars registered for VRT purposes up to the end of the period in question. Depending on the nature of the registration status of a trader, VAT returns can be made monthly, bi-monthly, quarterly, half yearly or annually and this will dictate the point in time when VAT on sales will actually be paid. It should also be noted that the VAT content of purchases of auto diesel is a deductible credit for business in the Irish VAT system.

In relation to tax revenue from motor insurance, a Stamp Duty levy is charged on most non-life insurance premiums, including motor insurance; but it is not possible to distinguish between the different types of insurance business within the yield from that levy.

I am further informed by the Revenue Commissioners that the latest year for which relevant figures are available in respect of benefits-in-kind arising from the provision of cars is 2003 and the yield in that year is estimated at €81.6m. This figure includes income earners whose main source of income is assessable to tax under Schedule D (self-employed) but who also have income from an employment subject to PAYE in respect of which a benefit-in-kind arises. The figure for 2003 is based on returns made by individual PAYE taxpayers. New procedures introduced from 1 January 2004 mean that employers are now required to account for PAYE, PRSI and Health Contributions on the taxable value of certain benefits-in-kind and other non-cash benefits provided by them to their employees. Provision was made for the return of this information in the form P35 for 2004 due for filing by employers in February 2005. However, as details of taxable benefits are required in aggregate form only on the P35 return it is not possible to separately identify different types of benefits.

Lucinda Creighton

Ceist:

150 Deputy Lucinda Creighton asked the Minister for Finance the amount of tax payable on a car valued at €15,000 under the current system; and if he will make a statement on the matter. [26278/08]

Lucinda Creighton

Ceist:

151 Deputy Lucinda Creighton asked the Minister for Finance the amount of tax payable on a car valued at €25,000 under the current system; and if he will make a statement on the matter. [26279/08]

Lucinda Creighton

Ceist:

152 Deputy Lucinda Creighton asked the Minister for Finance the amount of tax payable on a car valued at €35,000 under the current system; and if he will make a statement on the matter. [26280/08]

Lucinda Creighton

Ceist:

153 Deputy Lucinda Creighton asked the Minister for Finance the amount of tax payable on a car valued at €45,000 under the current system; and if he will make a statement on the matter. [26281/08]

Minister for Finance (Deputy Brian Lenihan)

I propose to take Questions Nos. 150 to 153, inclusive, together.

As the Deputy will be aware, the tax take on individual cars comprises VRT and VAT. The standard VAT rate of 21% applies to cars. VRT liability for passenger cars ('category A' vehicles) is calculated as a percentage of the Open Market Selling Price (OMSP) of the car concerned. The OMSP is defined in Section 133 of the Finance Act 1992 and is the price, inclusive of all taxes and duties, which a vehicle may reasonably be expected to fetch on a first arm's length sale in the open market in the State by retail.

The basis of calculating VRT for cars changed on 1 July 2008; and from that date VRT is charged as a percentage of the OMSP on the basis of a car's Carbon Dioxide emissions. I am informed by the Revenue Commissioners that the tax take for cars for a range of prices/OMSP, as requested, for each of the CO2 Emissions Categories, is set out in the following table.

Tax Take on Cars for a Range of Sample/OMSP

CO2 Emissions Category	A0-120g	B121–140g	C141–155g	D156–170g	E171–190g	F191–225g	G226g and over
VRT Rate	14%	16%	20%	24%	28%	32%	36%
Sample Price / OMSP
€15,000	4,339	4,587	5,083	5,579	6,074	6,570	7,066
€25,000	7,231	7,645	8,471	9,298	10,124	10,950	11,777
€35,000	10,124	10,702	11,860	13,017	14,174	15,331	16,488
€45,000	13,017	13,760	15,248	16,736	18,223	19,711	21,198