Greens' proposals on cars penalise 'gas guzzlers'

The Greens yesterday pressed the Government to accept their proposals for reform of the car tax system, which would benefit motorists who switched to cleaner cars or reduced their annual mileage, but would penalise large "gas guzzlers".

Speaking outside the gates of Leinster House, where some of the Green Party TDs showed off their environmentally-friendly cars, finance spokesman Dan Boyle said the party proposed to abolish annual registration tax on cars, replace Vehicle Registration Tax (VRT) and introduce a phased levy on fuel.

He maintained that the majority of existing drivers would be no worse off under the system, while those who chose to switch to cleaner cars or reduce their mileage would be significantly better off.

"We are proposing to replace VRT with an environmental charge which would take account of emissions, fuel efficiency and car size. We would also replace annual motor tax with a levy on fuel, phased in over five or 10 years. This will incentivise fuel efficiency and reward people for reducing their car miles, while not severely penalising them for having to keep a car in the first place."

Mr Boyle said the idea was that people doing average miles in an average-sized car would not be out of pocket, but those who changed their cars to more efficient models or altered their travelling habits to reduce mileage would save money.

"Naturally, huge 'gas guzzlers' will be penalised, but the system is sophisticated enough to reward bigger cars that are more fuel efficient. In the context of what the British chancellor introduced yesterday, our proposals present a realistic, reasonable and an innovative way of encouraging people to switch to lower emission vehicles, while penalising more environmentally damaging ones."