732. Deputy Roderic O'Gorman asked the Tánaiste and Minister for Finance if his Department has plans to review the motor-tax system for pre-2008 vehicles, in order that they may also be taxed based on CO2 emissions, consistent with the system for vehicles from 2008 to-date; and if he will make a statement on the matter [60430/26]

Motor tax on cars registered prior to July 2008 is based on engine capacity. To incentivise reductions in emissions of greenhouse gases, cars registered from July 2008 onwards are taxed on the basis of CO2 emissions. From the outset it was made clear that the new CO2 system would apply from a specified date and that cars registered before that date would continue to be taxed under the engine size-based system.

In the case of cars taxed on engine capacity, the banding is structured so that the level of tax payable increases as the engine size increases, with bands ranging from €199 to €1,809 per annum. In the case of cars taxed on the basis of CO2, the banding is structured so that higher emitting cars attract a higher rate of tax than lower emitting ones. The bands range from €120 per annum for zero emitting vehicles (i.e. electric vehicles) to €2,400 for the highest emitting vehicles.

Cars subject to motor tax under the engine size based regime form a low and ever decreasing proportion of all licensed cars and at present I have no plans to bring in legislation to change the basis for charging motor tax for vehicles registered prior to 2008 to the CO2 system.