Michael Noonan (Limerick City, Fine Gael)

There have been significant reductions in revenues from VRT and motor tax as a result of, among other factors, the consumer movement towards buying cleaner and cheaper cars. I am initiating a consultation process with the motor industry and other interested parties to commence in early 2012 to review options for the improvement in VRT and motor tax revenues in future years. In the meantime, however, the Minister will make provision for an increase in motor tax effective from 1 January 2012. This will generate additional income of some €47 million in 2012 to be used for Exchequer deficit reduction purposes.

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