COMMUTERS SHOULD CONSIDER ALTERNATIVES TO THE CAR - KENNY

Posted on February 22, 2013 11:30 AM   |   Permanent Link   

Speaking on the Motor Vehicle (Duties and Licences) Bill 2013, Deputy Sean Kenny called for people to consider public transport, cycling or purchasing smaller vehicles.

"The primary purpose of this Bill is to give a permanent basis in law to the increases in motor tax rates and trade plate licences, contained in the Financial Resolution passed by Dáil Eireann as part of Budget 2013."

"For licences commencing on or after 1st January 2013, flat rate increases of between €10 and €92 apply to private vehicles taxed on the basis of carbon emissions, with an average increase of 19.8%."

"Rates for private electric vehicles were reduced to €120. Increases of 7.5% apply to all other vehicles. Trade plate licences also increase by 7.5%."

"The Bill provides that the new rates of motor tax and fees for trade plates apply to licences taken out for periods beginning on or after 1st January 2013, and that veteran and vintage vehicles will be exempt from the new regimes."

"A review of the carbon banding of vehicles for VRT and motor tax was carried out in 2012. Following the review, the lowest emitting bands A and B were broken into six separate bands for motor tax purposes, along with a further zero band for privately owned electric vehicles.
The proposals under Budget 2013 will see an across-the-board increase of 7.5 per cent on cars registered before 2008 - meaning cars with a 2-litre engine will see the annual tax bill jump from €660 to €710. A more modest 1.4-litre car will increase from €358 to €385. The smallest cars with a 1-litre engine will go from €278 to €289."

"In pure monetary terms, it is true that cars with higher emissions will continue to see their tax bill increase - with the least eco-friendly cars seeing an increase of €92 a year. The owners of cars with lower or no emissions will see their tax bills fall. Emission-free cars bought since 2008, or electric cars bought before then, will see their tax fall by almost a quarter, to a flat rate of €120 per year."

"While increased taxes on cars are required given the economic situation the country is in, I would suggest that they are heading in the right direction, given that those with the most environmentally friendly cars are still required to pay less tax."

"People who will be looking to buy cars in the future should consider smaller cars that have smaller engines and therefore emit less carbon dioxide. People should also consider purchasing electric cars where possible, and I would call on the manufacturers of these cars to work towards making these vehicles cheaper to own and easier to purchase than they are at present."

"I think it is also important to remind the House that people who avail of public transport can avail of the TaxSaver Commuter Ticket Scheme, which was established as an incentive for the use of public transport. These public transport commuter tickets can be availed of when travelling for work by public transport bus or rail services. This scheme extends to include LUAS services and also applies where a ticket covers more than one operator, for example, an integrated ticket covering LUAS and Dublin Bus services."

"This incentive is seen as a positive way to encourage more people to avail of public transport in Ireland and to reduce traffic congestion. The employers and employees participating in the scheme sign a contract with each other agreeing to participate. The employer then applies, for example, to Iarnród Éireann and/or Dublin Bus for commuter tickets for employees who have chosen to take part."

"Employees receive tickets either as part of their salary package (salary sacrifice), in lieu of an annual cash bonus, or as a benefit-in-kind. Savings arise because tickets are not subject to tax or PRSI. Employees only have to pay tax and PRSI on the "money" portion of their salary. Employer PRSI is also calculated on the "money" portion of the employee's salary."

"Leap Cards, which were introduced during the lifetime of the present Government, are another incentive towards using public transport and are proving to be a huge success in its use across multiple public transport modes across Dublin. I understand that Leap Cards will eventually be used outside of Dublin."

"Another alternative to the private car is the Cycle to Work Scheme, a tax incentive scheme which aims to encourage employees to cycle to and from work. Under the scheme, employers can pay for bicycles and bicycle equipment for their employees and the employee pays back through a salary sacrifice arrangement of up to 12 months. The employee is not liable for tax, PRSI, levies or the Universal Social Charge on their repayments."

"Where possible, people should use public transport, particularly in cities, and where public transport is not available, I would encourage the Government to look towards examining major public transport projects for areas that are in need of public transport solutions, as well as previously expected projects that have been put on ice."