Brian Cowen (Laois-Offaly, Fianna Fail)

I am informed by the Revenue Commissioners that the relevant information available is the amount of tax revenues collected as VAT, excise and VRT in respect of motor vehicles. As regards VAT, all figures are estimates as the information to be furnished on VAT returns does not require the yield from particular sectors of trade to be identified. It is not possible to quantify corporation tax or income tax data separately for the motor industry.

In 2004, the provisional tax revenue was €3,752 million. This was comprised of VAT on a range of commodities including mineral oils, vehicle sales, other motor-related products and services of €962 million; mineral oil tax in respect of petrol, diesel and LPG of €1,845 million; and VRT of €946 million. In 2003, the tax revenue in respect of the motor sector was €3,256 million comprising VAT of €880 million; mineral oil tax of €1,557 million; and VRT of €819 million. In 2002, the tax revenue was €3,167 million comprising VAT of €860 million; mineral oil tax of €1,514 million; and VRT of €793 million.

In respect of annual motor tax, I am advised by the Department of the Environment, Heritage and Local Government that revenue from motor tax was €747 million in 2004, €680 million in 2003 and €539 million in 2002. As the figures illustrate, the tax raised from the motor sector is an important component of the overall tax take. It is a matter for Government as to how taxes across the different tax heads are raised. The Government has prioritised tax reductions on income earned by employees, in preference to other areas, and this policy has helped create record employment levels. The Deputy might wish to note that I did not increase VRT, VAT or excise rates on petrol or diesel in this year's budget. Consequently, increasing tax revenues arising from car sales to date in 2005 is a function of increased sales and, in some cases, higher prices but not higher tax rates.

See this speech in context