Written answers
Tuesday, 27 July 2021
Department of Finance
Tax Data
Gerald Nash (Louth, Labour)
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324. To ask the Minister for Finance the estimated cost or saving to the Exchequer in 2022 from applying alternative tax regime for VRT that would see the number of VRT bands increase from 11 to 14 as set out by the Tax Strategy Group 2020; if he will provide a comparison with the existing VRT system in tabular form; and if he will make a statement on the matter. [39867/21]
Paschal Donohoe (Dublin Central, Fine Gael)
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I can confirm to the Deputy that the number of Vehicle Registration Tax (VRT) bands that are applied to Category A vehicles was already increased from 11 to 20 in 2021.
The original table is presented below.
| VRT Bands | CO2 g/km | VRT Rate (Petrol) | VRT Rate (Diesel) [Effective 2019] |
|---|---|---|---|
| A1 | 0-80 | 14% | 15% |
| A2 | 81-100 | 15% | 16% |
| A3 | 101-110 | 16% | 17% |
| A4 | 111-120 | 17% | 18% |
| B1 | 121-130 | 18% | 19% |
| B2 | 131-140 | 19% | 20% |
| C | 141-155 | 23% | 24% |
| D | 156-170 | 27% | 28% |
| E | 171-190 | 30% | 31% |
| F | 191-225 | 34% | 35% |
| G | Over 225 | 36% | 37% |
The new VRT rates structure I legislated for in Finance Bill 2020 to replace the above is set out in tabular form below.
| BAND | FROM | Rate |
|---|---|---|
| 1 | 0-50 | 7.00% |
| 2 | 51-80 | 9.00% |
| 3 | 81-85 | 9.75% |
| 4 | 86-90 | 10.50% |
| 5 | 91-95 | 11.25% |
| 6 | 96-100 | 12.00% |
| 7 | 101-105 | 12.75% |
| 8 | 106-110 | 13.50% |
| 9 | 111-115 | 14.25% |
| 10 | 116-120 | 15.00% |
| 11 | 121-125 | 15.75% |
| 12 | 126-130 | 16.50% |
| 13 | 131-135 | 17.25% |
| 14 | 136-140 | 18.00% |
| 15 | 141-145 | 19.50% |
| 16 | 146-150 | 21.00% |
| 17 | 151-155 | 23.50% |
| 18 | 156-170 | 26.00% |
| 19 | 171-190 | 31.00% |
| 20 | Over 190 | 37.00% |
Gerald Nash (Louth, Labour)
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325. To ask the Minister for Finance the revenue raised by the domicile levy for the past three years in tabular form; the estimated revenue that would be raised from doubling the domicile levy from €200,000 to €400,000 under the existing criteria; and if he will make a statement on the matter. [39868/21]
Paschal Donohoe (Dublin Central, Fine Gael)
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The Domicile Levy was introduced in the 2010 Finance Act and is payable on a self-assessment basis on or before 31 October in the year following the valuation date. For example, the due date in respect of 2019 was 31 October 2020. The valuation date is 31 December each year.
The table below sets out the number of persons who have filed Domicile Levy returns and the amounts collected for the years 2017, 2018 and 2019. Returns in respect of 2020 are not due until 31 October 2021.
| Year | No of Returns | Amount Collected (€m) |
|---|---|---|
| 2017 | 12 | €1.41 |
| 2018 | 8 | €1.53 |
| 2019 | 10 | €1.77 |
| TOTAL | 30 | €4.71 |
While the amount of the Domicile Levy is €200,000 per annum, any Irish income tax paid by the relevant person is allowed as a credit in calculating the actual amount due in any year. The obligation to file and pay can also change from year to year depending on the circumstances of the relevant person. Therefore, it is not possible to quantify what the impact of doubling the rate from €200,000 to €400,000 would be.
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