John Gormley (Dublin South East, Green Party)

The Bill has been drafted on the basis that the rates to be applied under the CO2 emissions based system will apply to tax discs taken out for licence periods beginning on or after the introduction of the new CO2 emissions based system on 1 July this year. This applies to all new cars, whether they are registered after July or between January and June and subsequently switch to the new system of renewal of taxation. This approach is in keeping with the long-standing practice of changes to motor taxation rates. For example, when the motor taxation exemption class was extended in April 2001 to include mountain and cave rescue vehicles, the tax exemption did not come into effect until the motor taxation for any such vehicle was due for renewal. The Department is, therefore, abiding by established precedent.

The increase in rates from February in respect of the existing fleet only applies to discs taken out after February. Motorists who taxed their vehicles for periods commencing in January paid at the old taxation rates. This approach lends itself to better administrative practice and minimises changes to existing information technology systems.

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