Motor taxes set for overhaul

Motor taxes are in line for a major review to encourage drivers to buy more environmentally friendly cars under new State plans to reduce carbon dioxide emissions.

Cars such as the Toyota Prius enjoy low VRT rates. However the State does not make any discrepancies between cars on the basis of carbon dioxide production.
Drivers accounted for almost 12 million tonnes of carbon dioxide emissions in 2004.
The document ‘Ireland’s Pathway to Kyoto Compliance’ explained the reasons for the emissions.
“Many people are travelling more often, and there are more vehicles on our roads. People are buying larger private vehicles as disposable income increases, which is offsetting technological fuel efficiency improvements,” it stated.

“Emissions in 2004 increased by 6.1 per cent on the previous year, reflecting continuing growth in road traffic. The number of vehicles on our roads grew by 21 per cent between 2000 and 2004 alone.”
The situation is expected to worsen as Irish car numbers are expected to grow further. Ownership here is around 80 per cent of the EU average.

The document found that the average Irish car is driven 24,400 kilometres every year. This is 50 per cent higher than Britain and 30 per cent higher than in the United States.
Sinn Fein TD, Sean Crow, stated that higher energy costs meant the State’s fuel allowance must be increased substantially in the Budget.