John Cregan (Limerick West, Fianna Fail)
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Question 160: To ask the Minister for Finance the reason a vehicle purchased in and imported from the UK, where vehicle registration tax was originally paid, is subject to further VRT here. [40419/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am advised by the Revenue Commissioners that under section 132 of Finance Act 1992, vehicle registration tax (VRT) is chargeable, leviable and payable on the registration of vehicles in the State. There is no provision in law for the exemption from, or reduction in, the charge to VRT in relation to vehicles that were previously registered in another jurisdiction.

I would add that VRT is a national tax and does not contravene EU law. Article 90 of the EC Treaty allows Member States to charge national taxes provided that there is no discrimination against imported goods in favour of indigenous goods. It provides that "No Member State shall impose, directly or indirectly, on the products of other Member States any internal taxation of any kind in excess of that imposed directly or indirectly on similar domestic products".

Accordingly, in the case of a vehicle brought into Ireland from the UK or any other jurisdiction, VRT is payable on the registration of the vehicle in the State, irrespective of whether or not the taxes and duties payable in another jurisdiction on such vehicle have been properly paid.