Willie O'Dea (Limerick East, Fianna Fail)

As one who tries to do my own small bit in my constituency I share his view about the complexity of the information on this matter and intend to speak to the Minister for the Environment, Heritage and Local Government, Deputy Gormley, about it.

In respect of recommendation No. 17, vehicle registration tax is charged at the time of registration in the State. Under the revised system, the VRT rate applicable to new cars and used imported cars registered on or after 1 July 2008 will be determined by the CO2 emission rating of the car and no longer will be related to engine size. In so far as used cars imported after 1 July are concerned the CO2 emissions of a car presented for registration in the State will have to be declared to the Revenue Commissioners on form VRT4 at the time of registration by the person registering the vehicle. The declaration will be required to be supported by documentary evidence of the CO2 emissions of the car. Acceptable documentary evidence of the CO2 emissions will include a certificate of conformity for the particular model.

Since 2001 EU law requires CO2 emissions levels to be cited in this document or a previous registration certificate, a certificate from the manufacturer or distributor or an organisation approved by the Revenue Commissioners to provide such certificates. Where a certificate of measurement concerning CO2 levels for a vehicle is not available and does not satisfy the Revenue Commissioners, VRT will be charged on registration at the maximum rate allowable, 36%. Such a VRT rating would be open to an appeal through the VRT appeal system. Second-hand imported vehicles therefore will be subject to a similarly rigorous evaluation of carbon dioxide emissions as subsequent classification for the purposes of VRT as a new vehicle presented for registration in the State and will not be treated more favourably than a new car. The Society of the Irish Motor Industry approached me in state of great concern when this scheme was first announced and this was their main bone of contention. However, it is now satisfied with the Minister's proposals on VRT that there will not be discrimination as between new and second-hand cars. The change in the motor taxation system will be a new day's work and we will need to look anew.

I take the point made by Senator Harris about information. Dealing with the Revenue or visiting a tax office is now a pleasure compared to when I started in the politics business more years ago than I care to recall or relate. The Revenue Commissioners are continuing to do everything to make the tax system more user-friendly. They have introduced information lines for the various tax headings such as CAT and PAYE. They have introduced a facility for completing tax returns on-line and tax information may be obtained through a mobile phone text service or from any one of the 600 friendly counter staff. Every effort is made to publicise tax reliefs.

I have fought various referenda campaigns on behalf of various Governments. It seems the more information made available to people the more confused they become. The one complaint on the doorsteps up to the date of the referendum will be, "Sure, I know nothing about this. Nobody is telling me anything about it".

The Revenue Commissioners enclose with the annual tax-free allowance certificate a user-friendly and easy to read document which highlights all the allowances to which a taxpayer is entitled. I take the Senator's point that it would be preferable if more allowances could be claimed at source so that people would be guaranteed to receive them. In so far as is possible, the Revenue Commissioners have systems in place to claim tax relief at source. For example, if a person can prove he or she is over 65 years of age with an income not exceeding the exemption limit, the bank or financial institution is permitted to exempt their account from DIRT. Mortgage interest can be claimed at source.

There are difficulties with claiming certain reliefs such as medical expenses because there are so many providers of medical services who cost and bill in different ways. The same applies to relief on refuse charges, a point which has been raised in the House. Banks and financial institutions are experienced in dealing with mortgages, tax and documents but waste companies are in the business of processing waste rather than dealing with financial transactions and documents.

The Revenue Commissioners can use information data on date of birth to apply age-related relief at source. They have an arrangement with the Irish Pharmaceutical Union to provide relief at source for drugs supplied. They are working on a system for introducing medical relief at source and also service charges. I can assure the House that efforts are ongoing in this regard. They are publicising their more user-friendly services. They are easier to communicate with and are providing as much tax relief at source as is possible and this will continue.