Dáil Éireann Debate, Wednesday - 26 July 2017
1608. Deputy Jack Chambers asked the Minister for Housing, Planning, Community and Local Government the rules the EU imposes on motor tax rates; if Ireland is complying with all EU rules regarding motor tax; the reason for the discrepancy between motor tax rates here and the UK; and if he will make a statement on the matter. [35270/17]
Amharc ar fhreagraOther than the provisions of EU Directive 1999/62/EC (the "Eurovignette" Directive), the EU does not impose rules on motor tax rates. Directive 1999/62/EC provides a legal framework for charging heavy goods vehicles for the use of certain roads. While the Directive is largely concerned with the provision of mechanisms for infrastructure charging, it also sets minimum rates for the tax rates applied by Member States to heavy goods vehicles. The Directive provides for 39 different rates and bands, including a minimum rate of tax for the heaviest goods vehicles of €929. Although the currently applicable equivalent rate in Ireland is slightly below the rate set out in the Directive, it should be noted that the European Commission recently brought forward a proposal (COM 2017/276) which, if implemented, will gradually reduce the minimum rates by 20% each year for five years, bringing Ireland into compliance and ultimately resulting in a minimum rate of tax of zero for all bands at the end of the five years.
Other than the matters addressed by the Directive, it is a matter for the State to determine the motor tax regime and rates, having regard to revenue requirements and other policy objectives, including environmental objectives. Motor tax arrangements in the UK are a matter for the UK government.
