Dáil Éireann - Volume 300 - 12 October, 1977

Ceisteanna—Questions. Oral Answers. - Car Tax Revenue Replacement.

Mr. Quinn Mr. Quinn

19. Mr. Quinn asked the Minister for Finance how he proposes to replace the revenue which will be forfeited as a result of the abolition of car tax from August, 1977.

Mr. Colley Mr. Colley

142

Mr. Colley: The Government does not intend to impose any specific [142] charge to replace the revenue from motor vehicle duties on cars affected by the measure in question. As the Deputy is aware, the basic strategy of the Government is to cut inflation, stimulate demand, employment and output, and improve living standards through implementing the manifesto measures, of which the abolition of motor vehicle duties on cars up to and including 16 h.p. is one. The implications of this strategy for the public finances are that the enhanced level of economic growth will of itself generate a substantial amount of revenue buoyancy through both the direct and indirect taxes. This will offset over time the cost of the tax concessions and other elements of the Government's programme which involve an initial charge on the Exchequer.

Mr. Quinn Mr. Quinn

Mr. Quinn: Is the Minister saying that it is not proposed to increase the price of petrol to replace the revenue lost by the removal of car tax? Could the Minister give an assurance that petrol charges will not be increased in the next budget?

Mr. Colley Mr. Colley

Mr. Colley: The Deputy will appreciate that a Minister for Finance cannot give details of a forthcoming budget in advance of the budget. It was made perfectly clear on a number of occasions, and particularly during the general election campaign, that it was not intended to increase the price of petrol in order to recover the tax foregone as a result of this measure.

Dáil Éireann 300 Ceisteanna—Questions. Oral Answers. Car Tax Revenue Replacement.

Questions

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