Michael D'Arcy (Wexford, Fine Gael) | Oireachtas source

Since 1 January 2011, VRT has been charged on motor homes at a preferential category B rate of 13.3% of their open market selling price. This category, which is normally used for commercial vehicles, compares favourably to category A passenger vehicles, which are charged at rates between 14% and 36% of their open market selling price, depending on the level of carbon dioxide they emit.Were they not in the preferential category B, the majority of motor homes would be chargeable at rates of between 23% and 36%. Given that motor homes are typically high-value, luxury vehicles, high value and luxury items not being things Sinn Féin is in favour of, this equates to a large VRT discount in most cases. Motor homes also receive a reduced rate of motor tax of €102 per annum. As such, motor homes already receive highly preferential treatment in both the VRT and motor tax regimes.

The Irish VRT system has a number of objectives. VRT is an important source of revenue for the State. The system also seeks to reflect the negative externalities caused by using a vehicle in the State. These externalities are the costs to society and the environment that, without the tax, would not otherwise be reflected in the price of the vehicle and for which the consumer would not otherwise have to pay. In the case of motor vehicles, these include environment externalities such as air pollution, which is why one of the bases for imposing VRT is the vehicle's carbon emissions. Other externalities which VRT seeks to reflect include the cost to society of providing and maintaining the road infrastructure, traffic control, relevant emergency services and vehicle registration and licensing. The funds raised through VRT go towards compensating the Irish State for these significant costs.

Finally, VRT is liable on all new or used vehicles irrespective of whether they are being declared for registration through the distributor network or are imported privately. There is no tax advantage to purchasing a vehicle in the UK as the vehicle is liable to the same rate of tax when it is registered in the State. This equality of treatment applies to all vehicles in all categories and ensures that the VRT system continues to be applied fairly and evenly. Accordingly, I cannot accept the recommendation.