James Lawless (Kildare North, Fianna Fail)
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96. To ask the Minister for Finance the reason for the higher tax rates for vehicles registered from 2008 and subsequent years; and if he will make a statement on the matter. [21397/16]

Michael Noonan (Limerick City, Fine Gael)
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The system of VRT was revised in 2008. The VRT rate applicable to both new and used imported cars registered on or after 1 July 2008 is determined by the CO2 emission rating of the car and is no longer related to engine size. The VRT rate is applied to the Open Market Selling Price of the car, as before 2008. There are eleven CO2 emission bands with VRT rates ranging from 14% to 36%. The emissions-based system was instituted in order to incentivise a movement to lower emissions vehicles, and contribute to lowering Ireland's transport related carbon emissions in order to meet EU targets. The  revised VRT system rebalances VRT so that consumers would be rewarded for choosing lower CO2 emission vehicles.  Consumers have significant control over their VRT liability (ranging from 14% to 36%) depending on type of vehicle they choose to buy.