Below is our proposal for the removal of Vehicle Registration Tax, which is based on a fairer system of motoring for everyone. It has been
compiled with economic and environmental concerns in mind, and while we by no means state that this is the complete solution, we have
based our figures on very conservative estimates and the figures do add up. It is up to our government to work these figures and assumptions
into a workable alternative to VRT.

The figures which the government say they require to get rid of VRT have been rubbished by the Commission for Taxation already. The
Government believe the only answer is to lump 25-30 cent per litre on fuel. This shows just how short-sighted and unimaginative their
Policy making has been to date.  We believe we have shown some foresight in this area. Please have a look and let us know what you think.
You can contact us get in touch by email on the Contact page above.

A Solution to Vehicle Registration Tax in Ireland

1) A VRT amnesty offered for all foreign registered vehicles to allow owners to legally import their vehicles, with a handling fee
for registration similar to that of commercial vehicles, followed by payment of Irish Road Tax on these vehicles. There should be a
requirement to prove that a vehicle has been in the owner’s possession for a period of time prior to the announcement of the amnesty
to prevent vehicles being purchased abroad en-masse. As there is a quarterly payment available for payment of road tax, this should allow
affordable transfer of vehicles for all. Heavier penalties for non-payment of Road Tax for those who have registered their vehicles, but n
ot paid Irish road tax should also be implemented, enforced by An Garda Siochana.

2) After a period of 6 months, the removal of Vehicle Registration Tax, which should be replaced with a flat rate €100 Vehicle
Registration Fee. This should be extended to all new registrations including previously exempt vehicles.

3) Tax of 20 cent on each ticket sold imposed on all public, local authority and private pay and display car parks. 10% fine imposed on
all fines issued for non-compliance with parking bye-laws, and clamping/tow-away release charges. This should not be extended to
residential parking schemes.

4) End of any Scrappage Scheme on new car sales, replaced with a rebate for used car sales to used car dealers on models first registered
after 1st January 2008.

5) Regulation of motor tax amounts. CC based calculations should remain as they are for vehicles registered pre-January 2008, as an
incentive for buying a newer model.

6) Increase of 4 cent per litre on Petrol and 2 cent per litre on Diesel

RATIONALE:

1. Assuming 50000 vehicles are registered, paying on average €500 in road tax, plus €100 as a one-off registration fee, this would

generate approximately €130,000,000 over the next 5 years in Road Tax. These vehicles are already on the road however road tax

is currently being paid to a foreign government, mainly the UK. There would also be significant cost savings from less requirement

of enforcement by Customs & Excise.

2. Removal of VRT should see a huge increase in new vehicle sales, restored to near 2008 levels. Also, those previously considering

a 2007/2008 model should now see themselves in a position to purchase a brand new car. Assuming 100,000 new vehicles are

registered, this should see VAT receipts increase by approximately €175,000,000 to €340,000,000, and adding the registration fee

this will add a further €14,800,000. It would also have the effect of modernising the fleet of vehicles currently on the road in Ireland,

thus being more fuel efficient, and creating less CO2

3. Figures not yet available, although assuming 100,000 pay and display spaces exist, and excluding added revenue from enforcement

of non-compliance, this would generate approximately €8,000,000 per year. See calculation attached. I believe the number of spaces

available for pay and display to be a lot higher than 100,000. This will effectively act as a localise congestion charge also, and

hopefully discourage non-essential use of cars in built up areas..

4. With the removal of VRT, all vehicles will automatically depreciate, and the only casualty in this would be used car dealers. As

this industry is already in difficulty, it would be necessary to allow dealers time to wind down stocks, and allow a rebate on sales

of cars taxable under newer CO2 based Road tax prices. It should have less of an impact on those who currently own a vehicle, as

the depreciation will be across the board, and newer models will also depreciate, making their next purchase much more affordable.

The rebate would be based upon a % rate of VRT already paid on the vehicle purchased, on models later than January 2008, to

lessen the impact of depreciation on any remaining stock used vehicles.

5. By leaving CC rates or road tax in place, this will a much greater incentive for those changing their car to buy a 2008 model

or newer, as they will avail of cheaper road tax in most cases, and again helping to modernise the types of cars driven on Irish

roads – safer, more fuel efficient transport.

6. This measure would be required to slowly bring Ireland closer in line with EU objectives, by basing tax collected on usage,

rather than engine emissions. A simple example is that a driver may own a 1.0 litre Renault Clio, and will fall into the cheaper

tax bracket as it stands, whereas the owner of BMW X5 will fall into the higher bracket. If the BMW driver only does 5000 miles

per year, and the Clio driver does 40000 miles per year, the Clio driver is obviously creating much higher CO2. This would regulate

this part of the road tax, and should eventually lead to a usage-only based road tax. The initial rise would increase tax claimed by

the exchequer by approximately €150,000,000. per year, followed by an incremental annual rise/reduction regarding fuel tax/road

tax values.