Andrew Doyle (Wicklow, Fine Gael)
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419. To ask the Minister for Environment, Community and Local Government if he has considered replacing the annual car taxation with an additional levy on fuel; if he has reports or figures available to evaluate the levy imposed on fuel to make up the shortfall if the annual car tax was abolished; the advantages and disadvantage he would envisage arising out of this proposal; and if he will make a statement on the matter. [22317/13]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I have no function in relation to any levy, such as excise duty, placed on motor fuels, as this is a matter for the Minister for Finance. Motor tax receipts for 2012 were in excess of €1bn. It is estimated that, in order to raise a similar amount from motor fuels, an increase in excise for a litre of petrol and auto diesel in the order of 28-30 cent, inclusive of Value Added Tax, would be required.

I have no plans currently to seek to replace the current system of motor tax with additional taxation on motor fuel. In developing any such proposal, I would be conscious that such a move may be simpler to administer; would create a more direct relationship between use of the vehicle and the costs, with potential environmental benefits; and free up staff in licensing authorities, the Courts Service and time spent on enforcement by An Garda Síochána. I have not quantified these benefits in monetary or other terms, and nor have I quantified the potential disadvantages, which include the impact on inflation and economic competitiveness; the higher costs under a pay-as-you-drive system on goods vehicles and other high usage and high mileage vehicles, such as public service vehicles and buses; the other distributional effects, including on those with longer distances to commute; the extent to which this would impact on cross-Border fuel purchasing, further depressing the tax base and requiring a compensatory adjustment, either in further increases in fuel prices or elsewhere in the tax system, to make up the shortfall; the potential forward extent of increased fuel laundering; and the costs and modalities for maintaining a robust and accurate National Vehicle and Driver File to ensure compliance with roadworthiness testing, insurance certification and other traffic controls such as penalty points and fixed charge offences.