Seymour Crawford (Cavan-Monaghan, Fine Gael)
Link to this: Individually | In context

Question 492: To ask the Minister for the Environment, Heritage and Local Government the way he can justify a situation where one person driving a 1.6 TDCI diesel 127mg/km has to pay €428 tax while their neighbour driving the exact same car only has to pay €150; his views on whether this is unfair and unjust; and if he will make a statement on the matter. [32216/08]

John Gormley (Dublin South East, Green Party)
Link to this: Individually | In context

New emissions based VRT and motor tax systems were introduced in 2008 in order to influence the future purchasing decisions of car buyers. It was made clear from the beginning of the public consultation process on the proposed changes, in December 2006, that the proposals would not be made retrospective to the existing car fleet.

The question of applying the new CO2 based motor tax system to all cars was subject to further detailed debate on the Motor Vehicle (Duties and Licences) Act 2008. As was indicated in the debate, the rates under the CO2 system were determined on a revenue neutral basis so as not to undermine the monies available to the Local Government Fund. In addition, it was pointed out that any retrospection would not be practicable, as the CO2 data for the car fleet had not been authenticated for business purposes. The cost of any retrospection, were it possible, could be substantial, depending on how it applied, and could have direct implications for the revenue base of Local Government.