Brendan Griffin (Kerry South, Fine Gael)
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Question 112: To ask the Minister for Finance if vehicle registration tax applicable to safety equipment in new vehicles will be removed or reduced in an effort to encourage consumers to avail of optional extra safety equipment in new vehicles, such as side airbags, ABS and so on; and if he will make a statement on the matter. [28488/11]

Michael Noonan (Limerick City, Fine Gael)
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Vehicle registration tax is charged on the Open Market Selling Price (OMSP) of a vehicle which for new vehicles is defined in Section 133 (2) of the Finance Act 1992 as

(2) (a) For a new vehicle on sale in the State which is supplied by a manufacturer or sole wholesale distributor, such manufacturer or distributor shall declare to the Commissioners in the prescribed manner the price, inclusive of all taxes and duties, which, in his opinion, a vehicle of that model and specification, including any enhancements or accessories fitted or attached thereto or supplied therewith by such manufacturer or distributor, might reasonably be expected to fetch on a first arm's length sale thereof in the open market in the State by retail.

There are no plans to reduce or remove the VRT from vehicles where part of the VRT is derived from optional extra safety equipment, such as side airbags, ABS etc. as part of the "enhancements or accessories fitted or attached" and as such are included in the VRT charge.