Michael McGrath (Cork South Central, Fianna Fail)
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Question 334: To ask the Minister for the Environment, Heritage and Local Government if he will respond to an issue raised in correspondence by a person (details supplied) in County Cork. [18033/10]

John Gormley (Dublin South East, Green Party)
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Budget 2007 announced proposals for new motor tax and vehicle registration (VRT) systems to reward low CO2 emitting cars and penalise high CO2 emitting cars. A public consultation process was held from December 2006 to March 2007 and 1 July 2008 was chosen as the starting date for both the new motor tax and VRT systems.

The aim of the new system was to influence the purchasing decisions of consumers in the future. From 1 July 2008, anybody buying a new or pre-owned imported car would have been aware of both the motor tax and VRT rates which would apply based on CO2 emissions. Cars purchased prior to that date 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.

Retrospection prior to 2008 would not be practical as no authenticated CO2 data exist in respect of most of the existing fleet. The CO2 values on the Revenue and National Vehicle Driver File systems, in respect of new cars only, have not been collected as the basis for a fiscal charge and have not been authenticated to any degree. It would be unsound to apply charges on the basis of such data.

The above-mentioned public consultation process made it clear that the new CO2-based system would apply from a specified date and that cars registered before that date would continue to be taxed in future years under the existing motor tax system related to engine size.