FG proposes tax-reduction through alternative fuel

Fine Gael has proposed that vehicles using energy-efficient fuels should be charged a lower vehicle registration tax (VRT).

This is to try to lower emissions and increase the use of bio-fuels. Fergus O’Dowd, the party’s environmental spokesman, stated that Irish agricultural land offered the potential to grow other kinds of energy crops for bio-diesel and bio-ethanol.

The party is proposing that all petrol include a 5% bio-ethanol mix and all diesels a 2% bio-diesel mix.
Mr O’Dowd stated that Ireland cannot become like the United States, where an increased number of people were driving “gas-guzzling, road-hogging SUV’s, squeezing out smaller, smarter and more efficient vehicles in the process.”

His plan is to remove all excise duty on all renewable energy crops, setting up grants for producers, and a public competition to establish and operate bio-fuel processing plants.
The Louth TD warned that Ireland would face a bill of €400 million if it did not meet Kyoto Agreement commitments.

Ireland’s emissions were currently 25% above 1990 levels. Without the required action, Mr O’Dowd believed that emissions would rise by 37%, almost three times the permissible level.
Other incentives include grants of €500 for householders who convert home-heating to renewable energy technology.
FG’s target is to generate 33% of electricity needs from renewable energy sources by 2025.