Dáil debates

Tuesday, 7 December 2010

Financial Resolution No. 4: Excise (Vehicle Registration Tax)

 

7:00 am

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)

If we were to go the carbon tax route that would increase green diesel, home heating oil, etc. Under the programme, carbon tax increases are due in 2012 and 2014 and for that reason the excise duty was brought in as a route that would avoid increasing the price of other fuels. Advocating further increases on other fuels would not be a very sensible way to go and that is why we are not taking the carbon tax route on this issue.

We will see an increase in VAT rates from the British Exchequer. This is to keep the differential. What we are doing is presaging a change that is happening in the United Kingdom. Deputies will know that the price of diesel and petrol at filling stations is much less on the Republic side of the Border. I do not know what way it is with other operations.

It is important that we ensure this measure for the DAA where there is an increase in overall numbers. As an airport authority, it is entitled to incentivise airlines and has often done so.

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