A pure revenue generation system

Helpdesk: Michael McAleer answers your motoring queries

Helpdesk: Michael McAleeranswers your motoring queries

From Garvan McFeeley:

I feel the Minister for the Environment is discriminating against consumers who purchased energy-efficient cars in the past (ie pre-2008) by not allowing them to choose to have their car taxed based on emissions rather than engine size.

I have written to the Minister. Unfortunately, it's like an episode of Yes Ministerin the replies that I get. They have come up with a list of fairly lame excuses as to why it cannot be done. If you import a used car after July 1st its road tax will be emissions-based, so you have the scenario that two cars of the same year will pay a different road tax amount. In my case the road tax is € 453 by engine size, but only € 150 if it's emissions-based.

READ MORE

I don't hold out much hope that the Government will allow everyone to "choose" the lowest tax rate available. The Government's argument is that those who bought cars prior to the Budget made the decision without any definite idea of tax incentives down the line.

Last week The Irish Times published details of how the Government is preparing to introduce an option for motorists to choose which system - emissions or engine size - they wish to opt for if they bought their new car from January 1st to July 1st, when the new tax system comes into force.

One reason the Government backtracked was that the Minister had outlined in his Budget speech of December 6th, 2006 that the Minister for Environment was to introduce an emissions-based road tax system and that "this would apply to vehicles registered on or after January 1st 2008." The fact that it is taking the Government until July 1st to get systems in place to introduce emissions taxation is immaterial to those who took the Minister at his word.

It's harder to argue that it should apply to all cars. To do so is to suggest that road tax is some form of responsible repricing rather than a revenue generator. In 2006 motor tax generated €880 million for local authority coffers. Anything that might reduce that figure is likely to be resisted. This is not some "green tax". At its heart is a revenue generation system.

The anomaly with imported used cars is something we have highlighted. It has been reported that the Government is going to introduce a correction to this system as well, whereby only cars registered in other states after January 1st 2008 will have an emissions-based tax applied.

The impact depends on the car in question, but it seems inequitable for Irish used cars, and something that would impact on the used price you would get for your car if a similar used import is available that attracts a lower emissions-based tax. The same cars of the same age should surely attract the same road tax and VRT.

From Bill Harte, Co Dublin:

Our BMW 116 got a puncture, so I took it to United Tyres in Donnybrook to get it repaired. I was told that the tyres on the 1-Series are 'run-flat' and, as such, cannot be repaired.

But Murphy & Gunn's service department told me the tyre dealer was wrong and, since 2004, these tyres could be repaired. I then called United Tyres - they told me that the tyre manufacturers (Bridgestone/Goodyear) advise against repairing these tyres. They say it invalidates the warranty if it's repaired and, should there be a crash on a repaired run-flat tyre, the potential claim is against the repairer rather than the tyre manufacturer - a risk that they will not carry. Can you throw any light on what the situation is?

The dealer might have suggested you can get it fixed, but I'm sure he wouldn't want to do it. We contacted both BMW and Bridgestone and both follow the views of United Tyres: run-flats are not for repair.

The Bridgestone spokesman stated that the warranty on a tyre is not invalidated by a repair, but if the repair contributes to reduced performance this will not be covered by the tyre manufacturer. A BMW spokeswoman said the firm does not recommend repairing a run-flat. As to the extra cost, she said: "We believe the safety benefits of run-flats which are enjoyed every time the car is used outweigh the inconvenience of having to replace the tyre in the case of a puncture."

"Don't hold out much hope that the Government will allow everyone to 'choose' the lowest tax rate available.

Send your queries to Motors Helpdesk, The Irish Times, Tara St, Dublin 2 or e-mail motorshelp@irish-times.ie