70 Mr. Deasy asked the Minister for Finance if he will give details of the VRT as it applies to cars in this country; the annual revenue accruing to the Government as a result of this tax; if it is unique within the EU; the way in which it affects the price of cars overall; and the Government's proposals to abolish this tax. [5602/02]

Vehicle registration tax was introduced in 1993. It replaced the previous motor vehicle excise duty which was abolished when the EU Single Market came into being. VRT is an internal registration tax payable on the first registration of a vehicle in the State and applies to new and second hand cars.

The rates of VRT on cars are as follows: