Michael McGrath (Cork South Central, Fianna Fail)
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Question 342: To ask the Minister for the Environment, Community and Local Government the revenue that would be raised by increasing all motor tax rates by 2%; and if he will make a statement on the matter. [37116/11]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Motor tax receipts for the calendar year 2010 were €1,023m. Accordingly, an increase of 2% would yield total receipts of €1,043.5m, an increase of €20.5m.

Motor tax yields are falling as the yield from new cars, where tax is based on carbon emissions, is lower than from cars where the tax is calculated on the basis of engine capacity. Motor tax income to the end of October 2011 was €861m and it is expected that the final take for the year will be in the order of €998m. An increase of 2% on that estimate would yield approximately €20m.

Subject to the overall number of vehicles taxed and consumer choices in relation to car purchasing decisions, increases in rates do not necessarily translate into equivalent increases in overall yield.