Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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Question 102: To ask the Minister for Finance if he will consider including road tax in the price of fuel in order to ensure that those who drive more pay more and bearing in mind the environmental benefits and the opportunity for better use of Garda time by removing the need to check tax discs and oversee the prosecution of those not in possession of same; and if he will make a statement on the matter. [9031/11]

Michael Noonan (Limerick City, Fine Gael)
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The Deputy's proposal favours tax revenue being solely based on usage of a car, through fuel consumption, rather than ownership upon which motor tax is determined. This is often argued as the most favourable option from an environmental perspective as it embraces the 'polluter pays principle'. In an Irish context motor tax revenue is allocated to local authorities so this complicates the proposal somewhat.

In addition, motor tax (and VRT) have been reformed in recent years in order to stimulate interest in low emission cars which in turn has led to enhanced sales of more fuel efficient vehicles. This development has been welcomed by both motorists and the motor trade. Consequently it would seem premature to effectively reverse this significant policy change at this early juncture. Furthermore, replacing the revenue collected from motor tax would require a significant increase in excise duty on petrol and auto-diesel.