Dáil Éireann - Volume 644 - 18 December, 2007
Written Answers. - Motor Taxation.
Deputy Liz McManus Deputy Liz McManus
 Deputy Liz McManus asked the Minister for the Environment, Heritage and Local Government his views on the merits of family car engine size of 1.6 litres rather than a vehicle’s carbon emissions being the measure for motor tax hikes; and if he will make a statement on the matter. [29144/07]
Deputy John Gormley Deputy John Gormley
Deputy John Gormley: I refer to the Financial Resolution No. 3 on Excise Duties (Mechanically Propelled Vehicles) taken in the House on 5 December 2007 and the Carbon Budget, which I announced on 6 December 2007. While the Financial Resolution provided for an across-the-board increase of 9.5% on motor tax rates for the existing fleet up to 2.5 litres and an 11% increase above that threshold, the Carbon Budget provided for a move to a motor tax system based on CO 2 emissions. The new system will apply to new cars and newly imported cars registered from 1 July 2008. Cars registered before that date will continue to be taxed under the existing system relating to cubic capacity engine sizes.
The new motor tax system will consist of seven CO 2 bands commonly referred to as the seven white labels A to G, with the motor tax rates increasing as cars move up the CO 2 bands. The bands are the same as those announced by the Tánaiste in respect of VRT, so that there will be commonality of approach as between the motor tax and VRT systems. The clear objective of this new motor tax system is to influence the purchasing decisions of consumers by rewarding the buyers of low-emitting cars and charging a premium on less efficient vehicles.
A key part of both the motor tax and VRT initiatives will be a new mandatory labelling system for cars based on CO 2 emission levels. This will be accompanied by an active public information campaign, which will promote the purchase of fuel-efficient cars.
Dáil Éireann 644 Written Answers. Motor Taxation.