Dara Calleary (Mayo, Fianna Fail)
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Question 449: To ask the Minister for the Environment, Community and Local Government the level of motor taxation increases that have occurred during the past 12 months; the way the money collected is being used; and if consideration will be given to a reduction in motor taxation in view of the increased motoring cost. [9352/12]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Motor tax increases were announced in Budget 2012, in respect of vehicle licences taken out for periods commencing on or after 01 January, 2012. The last increases prior to that took effect from 1 January, 2009. The increases announced in the Budget were 7.5% across all category of vehicle, except for the three lowest CO2 rates for private vehicles, where the following flat rate increases applied:

The increase in income from the rate increases, an estimated €46.5m, will be transferred to the Exchequer. This is an immediate and necessary measure towards the reduction of the national debt. The Local Government Fund will retain the income from the existing rates of motor tax.

Any further changes to the motor taxation system will be considered as part of the review of the carbon banding of VRT and motor tax that is being undertaken this year. It is my intention that the twin priorities of ensuring the protection of the tax base and the positive environmental impact of the existing basis of taxation will be carried through to the future. I have no proposals to reduce motor tax at present.