Skip to main content

Parliamentary Question addressed to the Minister for Finance

4th May 2014 - Olivia Mitchell TD

To ask the Minister for the Environment, Community and Local Government his plans to review the current motor taxation system in view of the fact that there are many more efficient cars on the road now than when the system was introduced and of the penalising effect on those who cannot afford to upgrade their cars to newer models; and if he will make a statement on the matter?

Reply  

 

The system of motor tax based on CO 2 emissions applies only to cars first registered from 1 January 2008 onwards. Cars registered prior to that date continue to be taxed on engine capacity .     CO 2 data on the National Vehicle and Driver File (NVDF) for vehicles registered prior to 2008 have not been validated for business purpose, and it would not be safe to apply ch arges on the basis of such data.     
 
T he average increase in motor tax for cars taxed on engine capacity was 7.5% in Budgets 2012 and 2013, compared to the increases in 2012 ranging from 7.5% to 53.8% , and the increases in 2013 ranging from 4% to 22.2% , for vehicles charged on the basis of CO 2    emissions.
 
I have no plans to change the system of motor tax based on engine capacity for pre-2008 cars and CO 2 emissions for 2008 and later cars .