ESRI questions new carbon taxes

June 17, 2008
ESRI questions new carbon taxes
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Car ownership "does not generate any emissions in Ireland, while car usage obviously does", the ESRI has told the Government in a submission, the Irish Times reports. The submission suggested that "taxes and charges" should be based on usage, as opposed to ownership.


Under the changes proposed by the departments of Environment and Finance, the amount of VRT and Road Tax paid on new vehicles will be calculated on the vehicle's carbon emissions over one kilometre. But this calculation is the same whether the vehicle is big or small, so those who drive thousands of kilometres and emit tonnes of carbon, will pay the same levels of VRT and road tax, as those who own and drive a similar car infrequently. In pointing this out, the ESRI is echoing the position of the AA, which has previously expressed concern about the effect of next month's taxation changes, particularly the inequity in relation to the "polluter pays" principle….A spokesman for the Minister for the Environment John Gormley said, the fact was that larger cars were a factor in Ireland's transport emissions and the changes were about consumers making choices in line with environmental concerns.

Irish Times
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