WHY NOT INCREASE THE PRICE OF PETROL?

... and abolish VRT on cars of two litres or under?

Labour Councillor for Dundrum and General Election candidate Aidan Culhane has called on the Government to take a significant step towards addressing the Irish contribution to global warming by abolishing VRT and increasing excise duties on petrol.

Councillor Culhane said:

“As the latest Kyoto emissions table shows, the FF/PD Government has failed to address what is probably the single most serious issue facing us. It is time to end this paralysis.

I am suggesting that we take a sensible, practical and radical move that changes the way we are incentivised to use motor vehicles. What we need to do primarily is not to penalise the ownership of cars, but to penalise the ownership of high emission vehicles like SUVs and the overuse of cars in general. In short, we should reduce VRT and increase petrol prices in such a way as to seek to neutralise its impact on Government revenue, fears of which have probably acted as the greatest disincentive to change in the past.

Based on 2005 AND 2004 figures, I estimate that a 14c increase in excise duties on diesel and petrol would allow for the abolition of VRT on cars with an engine capacity of under two litres.

The abolition of VRT while conferring an immediate advantage on people buying new cars would also feed its way into the prices paid for second hand cars, thereby conferring an advantage an all users. The move would also increase the price differential between large engined vehicles and small vehicles similar to how the motor taxation system already works. To incentive the use of more fuel efficient vehicles they too could be exempted from VRT.”