Dáil Éireann Debate, Tuesday - 14 May 2013
419. Deputy Andrew Doyle asked the Minister for the Environment, Community and Local Government if he has considered replacing the annual car taxation with an additional levy on fuel; if he has reports or figures available to evaluate the levy imposed on fuel to make up the shortfall if the annual car tax was abolished; the advantages and disadvantage he would envisage arising out of this proposal; and if he will make a statement on the matter. [22317/13]
Amharc ar fhreagraI have no function in relation to any levy, such as excise duty, placed on motor fuels, as this is a matter for the Minister for Finance. Motor tax receipts for 2012 were in excess of €1bn. It is estimated that, in order to raise a similar amount from motor fuels, an increase in excise for a litre of petrol and auto diesel in the order of 28-30 cent, inclusive of Value Added Tax, would be required.
I have no plans currently to seek to replace the current system of motor tax with additional taxation on motor fuel. In developing any such proposal, I would be conscious that such a move may be simpler to administer; would create a more direct relationship between use of the vehicle and the costs, with potential environmental benefits; and free up staff in licensing authorities, the Courts Service and time spent on enforcement by An Garda Síochána. I have not quantified these benefits in monetary or other terms, and nor have I quantified the potential disadvantages, which include the impact on inflation and economic competitiveness; the higher costs under a pay-as-you-drive system on goods vehicles and other high usage and high mileage vehicles, such as public service vehicles and buses; the other distributional effects, including on those with longer distances to commute; the extent to which this would impact on cross-Border fuel purchasing, further depressing the tax base and requiring a compensatory adjustment, either in further increases in fuel prices or elsewhere in the tax system, to make up the shortfall; the potential forward extent of increased fuel laundering; and the costs and modalities for maintaining a robust and accurate National Vehicle and Driver File to ensure compliance with roadworthiness testing, insurance certification and other traffic controls such as penalty points and fixed charge offences.
