Written answers

Tuesday, 21 July 2020

Photo of Louise O'ReillyLouise O'Reilly (Dublin Fingal, Sinn Fein)
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193. To ask the Minister for Finance if his Department has calculated the potential extra yields if the levy charged on NOx milligram per kilometre under the vehicle registration tax environmental health, or NOx, surcharge was doubled; and if he will make a statement on the matter. [16580/20]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that based on 2019 sales levels and the average Nitrogen Oxide (NOx) rate charged per vehicle in the first six months of 2020, the proposed increase could raise an additional €55m in a full trading year. The bulk of this additional amount (€34m) would arise from imports of second-hand diesel vehicles. This estimate assumes no consumer behavioural change as a result of doubling the NOx charge or on the numbers or profile of used imported vehicles.

The impact of COVID-19 pandemic on the sale of motor vehicles has greatly reduced activity within this sector. For example, compared to the same period in 2019, sales of new passenger vehicles are down by 33% while used passenger vehicles are down by 57%. The yield from the NOx component of VRT for the first 6 months of 2020 is in the region of €14m.

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