Simon Harris (Wicklow, Fine Gael)
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Question 140: To ask the Minister for the Environment, Community and Local Government the way in which motor tax payable on a specific model of car can vary considerably depending on the date of purchase; his plans to address this anomaly; and if he will make a statement on the matter [24484/12]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The motor tax system currently has two systems of charging for private vehicles. For vehicles registered prior to 2008, taxation is on the basis of engine capacity. To incentivise reductions in emissions of greenhouse gases, for those registered from 2008 onwards, motor tax is based on the CO2 emissions level of the vehicle. The question of applying the new CO2 based motor tax system to all private vehicles was subject to detailed discussion during the debate on the Motor Vehicle (Duties and Licences) Act 2008. Retrospection would not be possible, as the CO2 data for the pre-July 2008 car fleet were not authenticated for business purposes. The cost of any retrospection could be substantial were it possible, depending on how it applied, and could have direct implications for the revenue base of local government.

On Budget Day, 06 December 2011, a review of the current system of Vehicle Registration Tax, which is also based on CO2 emissions, and motor tax was announced, with the objective of adjusting CO2 bands and rates in line with technological advances, while maintaining a positive environmental incentive to reduce transport emissions and protecting and improving revenues for the State. The review, a joint undertaking by the Department of Finance and my Department, with input from the Department of Transport, Tourism and Sport and the Revenue Commissioners, is now in progress, and any changes to the motor tax system will be considered in that context.