Seanad debates
Wednesday, 3 March 2004
Motor Vehicle (Duties and Licences) Bill 2004: Second Stage.
2:00 pm
Martin Mansergh (Fianna Fail)
As Fianna Fáil finance spokesperson, I welcome the Bill. The 5% increase in motor vehicle tax was included in the budget and is moderate. I can remember discussions in the tax strategy group apropos of green taxation in which there would have been advocates for a much a greater increase.
Motor tax is a highly progressive system of taxation. The poorest in our society do not own cars and therefore do not pay the tax. Someone who has a small car pays a small amount of tax. Anyone who has a car of more than 3001cc is unlikely to be in the social welfare system unless he or she is the sort of person in whom the Criminal Assets Bureau takes an interest.
Senator Bannon referred to many things that need to be done. It is necessary to raise tax and raise revenue, but the real point——
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