Oireachtas Joint and Select Committees

Tuesday, 17 November 2020

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach

Finance Bill 2020: Committee Stage (Resumed)

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein) | Oireachtas source

This will see an increase in motor tax for a small proportion of newly registered cars in 2021 and also for cars that have been registered since 2008. I understand the changes will amount to between €10 and €40. Concerns have been raised, particularly with respect to cumulative changes in the Finance Bill for a family with a car. The Society of the Irish Motor Industry, SIMI, has indicated this will push up the price of a family car by approximately €1,000. Will the Minister comment on that?

Our taxation regime, particularly vehicle registration tax, is guided towards emissions and this makes complete sense. We must all recognise that in all of this, not everybody can trade up to a newer car because some people do not have the means to do. I also note the changes for pre-2008 cars mean there will not be any increases in tax there.

There is always a matter that arises and I have raised it on numerous occasions. It relates to families with four or more children, and to travel as a family they need a car with seven seats. They may be described as gas guzzlers but they may be required in order to do the school or football run or getting to a shopping centre with the páistí.

Will the Minister comment on the cumulative effect of these changes, particularly the statement from SIMI that this will push up prices for a family car by €1,000. It contends that this measure will disincentivise people from changing their cars to more energy-efficient models. What about the impact of the motor tax provision on older cars, which may be used by those in lower income households because those people do not have ability to change? They will see an increase in taxation.

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