Jim Daly (Cork South West, Fine Gael)
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288. To ask the Minister for Environment, Community and Local Government his views on the rate of road tax for pre 2008 motor cars; his further views that it is fair and reasonable that identical family cars with same engine size and emission rating are rated up to 500% more if registered in 2007 as opposed to 2008; his views on allowing owners of vehicles of all ages the opportunity to tax their car based on a recognised certificate of emissions, national car test standard or similar; and if he will make a statement on the matter. [38902/14]

Alan Kelly (Tipperary North, Labour)
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I have no plans to change the basis of charging motor tax from engine capacity to carbon emissions (CO₂) for cars registered prior to 2008. The question of applying the CO₂based system to all cars was the subject of detailed discussion at the time of introduction of the new basis of taxation in 2008. Any retrospective application would not have been possible as the CO₂data available for the existing fleet had not been authenticated for this purpose.

For cars registered since 2008, tax is based on the CO₂emissions level as provided on the Certificate of Conformity for the vehicle. The level of CO₂is determined at manufacturing stage as part of the type approval process for the vehicle. It is the level emitted in terms of grams per kilometre driven and is also affected by factors such as engine size, body type and weight, aerodynamics, type of transmission, etc. I understand that determining the level of CO₂emitted by a vehicle is expensive and that it is generally only carried out in respect of new vehicles at manufacturing stage.

Further, it is my understanding that a test for CO₂does not form part of the NCT test.

In recognition of the lower average motor tax paid in respect of vehicles taxed on the basis of CO ₂emissions compared to pre-2008 vehicles, differential increases have been applied in recent Budgets with a view to re-balancing the tax base while retaining the environmental incentive to purchase more environmentally friendly vehicles. The percentage increase in motor tax for passenger vehicles taxed on engine capacity was 7.5% in Budgets 2012 and 2013, compared with increases averaging 25.5% in Budget 2012 and 19.8% in Budget 2013 for vehicles taxed on CO ₂.