Alan Dillon (Mayo, Fine Gael)
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358.To ask the Minister for Finance to consider making changes to the VRT for crew carrier vehicles and jeeps in the upcoming budget; and if he will make a statement on the matter. [32245/24]

Jack Chambers (Dublin West, Fianna Fail)
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Under the Finance Act 1992, Vehicle Registration Tax (VRT) is assessed on a vehicle at the time of its registration, and the tax payable depends on the VRT category of vehicle involved. VRT categories are linked to the vehicle’s technical categorisation under EU type-approval rules.

VRT category A is for passenger vehicles and vehicles in this category are generally EU category M1. Also included in this category are certain EU category N1 vehicles which have four or more seats. The amount of VRT on a category A vehicle has two components based on the vehicle’s carbon dioxide (CO2) and nitrogen oxide (NOx) emission levels. The CO2 component of the VRT charge is a percentage of the vehicle’s Open Market Selling Price (OMSP), ranging from 7% for a vehicle which has low CO2 emissions, up to 41% of the OMSP for vehicles with the highest emission levels. The NOx component of VRT is calculated using a progressive scale, starting with €5 and up to €25 per mg/km of the vehicle’s NOx emission levels. As a result of these calculations the total VRT charge for category A passenger vehicles increases according to the emissions of the vehicle involved and its market value.

Category B vehicles includes EU category N1. These vehicles are commercial vehicles, designed and constructed for the carriage of goods and not exceeding 3.5 tonnes. They generally have 3 seats or less, or, have more than 3 seats, but were assigned a BE bodywork code, meaning they have distinct passenger and cargo compartments in completely separate units. The VRT on category B vehicles is calculated at 13.3% of the OMSP of the vehicle.

Jeeps are classified as EU category M1 and are included in VRT category A. Crew carriers are EU category N1 and can be categorised as category A or category B for VRT purposes. Their VRT categorisation depends on the details of the vehicle’s technical specification, including whether the cargo and passenger areas are separate. If the vehicle’s cargo space is completely separate from the passenger space it will qualify for category B, due to the distinct cargo compartment. The category B VRT rate of 13.3%, for which crew carriers generally qualify, will typically result in a lower VRT charge than the vehicle would otherwise attract as a category A passenger vehicle.

As the Deputy will be aware, it is a long-standing practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.