Chris Andrews (Dublin South East, Fianna Fail)

The old system has been replaced by an exemption of €125,000, a 7% rate on the next €875,000 and a 9% rate on sums above that. A measure which is often overlooked but which will create more flexibility for individuals is the reduction in the stamp duty claw-back provision for new residences and for first-time buyers from five to two years.

The Bill also prioritises the environment. Practical measures are necessary to help protect our economy and environment. A new tax initiative for energy efficient equipment will allow companies to claim the full cost, in the year of purchase, of specified energy efficient equipment against their taxable income. The purpose is to assist in improving cost competitiveness while helping to reduce overall energy demand and carbon emissions.

The Bill provides for a fundamental reform of the vehicle registration system. It will provide the opportunity for people to make choices to help the environment and provide financial incentives to do so. The VRT system is being revised to take greater account of carbon dioxide emissions, with VRT exemption for series production electric cars and up to €2,500 VRT relief for certain series production hybrid and flexible fuel cars. Over time, this will have to change and become more finely tuned. This is the first step in having the economy and the environment work more closely together. People recognise the benefits. The green agenda has moved to centre stage. Fianna Fáil and the Greens have recognised this and we are now putting it into practice.

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