Written answers

Wednesday, 30 January 2008

Department of Environment, Heritage and Local Government

Motor Taxation

8:00 pm

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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Question 1307: To ask the Minister for the Environment, Heritage and Local Government his views on whether the implications on certain categories as a result of a change in a system (details supplied) is fair; and if he will make changes to rectify this discrepancy. [2802/08]

Photo of Frank FeighanFrank Feighan (Roscommon-South Leitrim, Fine Gael)
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Question 1308: To ask the Minister for the Environment, Heritage and Local Government if imported used vehicles from the EU after 1 July 2008 and are VRT duty paid after that date, will have the new motor tax scheme based on CO2 emissions applied to those same vehicles; if so, if he expects that imported used cars for sale on the market here will have an advantage over cars registered here originally which will carry a higher level of motor tax throughout its lifetime on the road. [2871/08]

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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Question 1319: To ask the Minister for the Environment, Heritage and Local Government his views on including fuel efficient cars bought prior to 1 July 2008 in the new motor tax regime for fuel efficient cars to be introduced at that time; and if he will make a statement on the matter. [1063/08]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Question 1326: To ask the Minister for the Environment, Heritage and Local Government if his attention has been drawn to the anomaly in the proposed tax regime for motor vehicles whereby persons who go out now and buy a high emission vehicle will avoid the new VRT, whereas persons who have on grounds of social responsibility bought low emission cars ahead of the Government move on VRT will find themselves penalised in relation to the motor tax regime for the future; and if he will take steps to address these anomalies. [1174/08]

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 1342: To ask the Minister for the Environment, Heritage and Local Government the arrangements for all imported cars into the State in relation to the new emissions based car tax regime; and if he will make a statement on the matter. [1448/08]

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 1343: To ask the Minister for the Environment, Heritage and Local Government if he will apply the new emissions car tax regime to all second hand and new imported cars into the State; the way he will test the vehicles for their emissions and apply the appropriate vehicle tax label; and if he will make a statement on the matter. [1449/08]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 1351: To ask the Minister for the Environment, Heritage and Local Government if car tax governing low emission vehicles will be implemented from 1 January 2008 instead of 1 July 2008 which at present discriminates against all early adopters interested in purchasing energy efficiency cars before then; and if he will make a statement on the matter. [1539/08]

Photo of Paul GogartyPaul Gogarty (Dublin Mid West, Green Party)
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Question 1371: To ask the Minister for the Environment, Heritage and Local Government the plans, following the new VRT emissions-based system, in place to fairly calculate and levy motor tax charges on the emissions caused by similar new cars being imported from the UK and other jurisdictions after 1 July 2008, in view of the fact that as it currently stands identical new cars with equal emissions will be taxed differently; and if he will make a statement on the matter. [2007/08]

Photo of John GormleyJohn Gormley (Dublin South East, Green Party)
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I propose to take Questions Nos. 1307, 1308, 1319, 1326, 1342, 1343, 1351 and 1371 together.

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 pre-owned 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 having 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. From 1 July 2008, anyone buying a new or pre-owned imported car will be aware of both the motor tax and vehicle registration tax (VRT) rates which will apply, based on CO2 emissions. In order to promote awareness of the new CO2-based motor tax and VRT systems, and to influence purchasing decisions of car buyers, a new mandatory labelling system will be introduced which will be accompanied by an active public information campaign. Existing cars were purchased in the knowledge that the basis of assessment for both motor tax and VRT was engine capacity (c.c.) and not CO2 emissions. In view of the fact that the CO2 rating for similar size cars (in terms of engine capacity) can vary as much as 45%, it would be inequitable to apply the new CO2 system to the existing fleet. It would also be unfair to penalise car owners for a purchasing decision made in the past. In addition, it is essential that there is certainty and accuracy in term of CO2 ratings. Under both the new motor tax and VRT systems, the CO2 rating will be based on the car's Certificate of Conformity, under EU type approval law. This CO2 rating will be captured initially by the Revenue Commissioners at vehicle registration tax stage and passed on to the national vehicle file. In the absence of a certificate and the Revenue Commissioners not being satisfied as to the CO2 rating the motorist will be required to pay the highest motor tax rate. The same scenario will apply to VRT in relation to a CO2 rating that cannot be obtained. CO2 ratings are not available for the vast bulk of the existing fleet. Finally, I understand that the new motor tax systems based on CO2 emissions introduced by Cyprus, Netherlands, Portugal, United Kingdom and Norway were confined to new or pre-owned imported cars. In addition, at EU level the proposal for a Council Directive on passenger car related taxes envisages its application to newly registered cars only.

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