VRT unlikely to be scrapped

Despite calls for Vehicle Registration Tax (VRT) to be scrapped, an Oireachtas Committee has been told that road tax would be increased to E960 per annum, a situation that looks certain to be avoided.

Department of Finance official John Burke was speaking to the Oireachtas Committee on Wednesday afternoon to relate information to the members over considering EU proposals on passenger car-related taxes.
“Given such a buoyant market, any move towards reducing taxes on new cars could be seen by many as being unnecessarily reducing the revenue streams required to fund public services,” said Mr Burke.

The EU are keen to abolish registration taxes by 2016. They also seek a restructuring of the tax base so that by December 31, 2008, in the region of 25% of total car tax would be linked to carbon dioxide emissions.