Conference votes to abolish motor tax

Fuel tax: Delegates voted to abolish motor tax and vehicle registration tax (VRT) and to transfer the tax on to excise duties…

Fuel tax: Delegates voted to abolish motor tax and vehicle registration tax (VRT) and to transfer the tax on to excise duties on fuel.

The conference agreed to phase out over a five-year period the two taxes, and charge for the "environmental cost of usage rather than ownership of a motor vehicle".

Fuel tax would not, however, be charged on biofuels "so that the higher the proportion of biofuel used in the mix the lower the price of the fuel".

The conference also voted that grants should be made available to companies involved in the transport industry to enable them to convert to biofuels.

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Martin Hogan ( Dublin South Central) said VRT was penalising new cars which were more environmentally-friendly and "less damaging". Car tax was "completely ineffective" and was no burden to car owners in Blackrock in Dublin and Montenotti in Cork.

Cllr Fintan McCarthy (Dublin Mid West) said people who choose to leave their cars at home and use public transport "shouldn't have to pay tax" for their good behaviour.

However, Kieran Cunnane (Galway West) opposed the transfer. He said the "embedded energy costs" in the manufacture of each car was the equivalent of between 12,000 and 72,000 miles. "The benefits of producing more efficient cars are not enough" and "even members of this party have a car obsession".

He said they should keep VRT. "It is not great but it keeps the costs of cars high."

Marie O'Halloran

Marie O'Halloran

Marie O'Halloran is Parliamentary Correspondent of The Irish Times