Richard Bruton (Dublin North Central, Fine Gael)
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Question 396: To ask the Minister for the Environment, Heritage and Local Government the reason for not providing the proposed motor taxation concessions for fuel efficient cars to owners of such cars who purchased them prior to the commencement date of the new vehicle registration tax regime. [35845/07]

John Gormley (Dublin South East, Green Party)
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Budget 2007 announced proposals for new motor tax and vehicle registration tax (VRT) systems to reward low CO2 emitting and penalise high CO2 emitting cars. It was made clear at the time that the new system would apply to new cars and newly imported cars. A public consultation process was held from December 2006 to March 2007 following press notices inviting public submissions. Both the public consultation process and subsequent press comment pointed to the desirability of members of the public being given reasonable notice of any tax changes being introduced and the need for an acceptable lead-in period for the motor trade.

It was against this background that 1 July 2008 was chosen as the starting date for both the new motor tax and VRT systems. The aim of the new system is to influence the purchasing decisions of consumers in the future. It would be unfair to penalise car owners for a purchasing decision made in the past.

Finally, I would add that the proposal for an EU Directive on passenger car-related taxes applies to cars registered for the first time in a Member State.