Brian Stanley (Laois, Sinn Fein)
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44. To ask the Minister for Transport, Tourism and Sport if the road tax rates on older cars that are perceived to be excessively high and are penalising lower income drivers and those living in rural areas will be reviewed; and if he will make a statement on the matter. [30938/18]

Shane Ross (Dublin Rathdown, Independent)
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Motor tax on cars registered prior to 2008 is based on engine capacity.  To incentivise reductions in emissions of greenhouse gases, cars registered from 2008 onwards are taxed on the basis of CO₂ emissions.  In the case of cars taxed on engine capacity, the banding is structured so that the level of tax payable increases as the engine size increases, with bands ranging from €199 to €1,809 per annum.  In the case of cars taxed on the basis of CO₂, the banding is structured so that higher emitting cars attract a higher rate of tax than lower emitting ones.  The bands range from €120 per annum for zero emitting vehicles (i.e. electric vehicles) to €2,350 for the highest emitting vehicles. 

The level of usage of private vehicles is not a feature of the motor tax system and those owners living in rural areas are paying tax on the same basis as those living in urban areas.

While the highest CO₂band attracts a rate of tax higher than the top engine capacity rate, it is acknowledged that, overall, the average annual tax is lower on vehicles taxed on CO₂(currently €258 versus €500).  Accordingly, higher percentage increases were applied to cars taxed on CO₂in Budget 2012 and Budget 2013 with a view to re-balancing the tax base while retaining an 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 increased averaging 25.5% in Budget 2012 and 19.8% in Budget 2013 for vehicles taxed on CO₂.

Adjustments to the relative rates within the parameters of the existing system are generally considered in the context of the national budget and, therefore, it would not be appropriate to comment further on possible changes to motor tax rates at this particular time.