State to resist EU car tax plan

THE Government has said it will staunchly resist EU moves to scrap Vehicle Registration Tax (VRT).

The European Commission wants VRT phased out in all member states by 2016, arguing it distorts the single market. 16 of the 25 member states levy the tax in varying amounts.

Irish consumer and motorist groups have argued that, with a handful of exceptions, the levels of VRT charged by the Government are in excess of other member states, making new cars much more expensive to buy here.