Michael Ring (Mayo, Fine Gael)
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Question 193: To ask the Tánaiste and Minister for Finance the way the new vehicle registration tax will work. [3046/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Under the revised VRT system, the VRT rate applicable to both new and used imported cars registered on or after 1 July 2008 will be determined by the CO2 emission rating of the car and will no longer be related to engine size. The VRT rate will continue to be applied to the Open Market Selling Price of the car. There will be seven CO2 emission bands with VRT rates ranging from 14% to 36%. The certificate of conformity will normally be used to determine the CO2 emissions of cars registered in the State.

In respect of pre-owned used cars imported after 1 July 2008, the CO2 emissions will have to be declared to the Revenue Commissioners on form VRT4 (declaration for registration of a used vehicle) by the person registering the vehicle. The declaration will be required to be supported by documentary evidence of the CO2 emissions. Acceptable documentary evidence (provided the CO2 emissions is shown) will include:a certificate of conformity for the particular model, (since 2001, EU law requires CO2 emission levels to be recited in this document), or a previous registration certificate, or a certificate from the manufacturer or distributor, or a certificate from an organisation approved by the Revenue Commissioners to provide such certificates.

Where a certificate or a measurement confirming CO2 levels for a vehicle is not available or does not satisfy the Revenue Commissioners, VRT will be charged on registration at the maximum rate allowable i.e. 36%. Such a VRT rating would be open to appeal through the VRT appeals system.

The legislative provision for the revised VRT system is included in the Finance Bill and further details regarding registration procedures and requirements will be set out in a Statutory Instrument.