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Written by Irish VRT.ie
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Tuesday, 01 April 2008 16:04 |
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In Budget 2008, the Motor Tax rates were increased as predicted. The new rates were introduced from 1st February 2008. Engine sizes up to 2500cc saw an increase of 9.5% to their annual motor tax, while those with larger engines were subject to an 11% increase. These new rates will apply to vehicles bought or imported before 1st January 2008, and temporarily to those bought or imported between then and 1st July 2008.
Some industry experts believe that the new increases are unfair. Cyril McHugh, Chief Executive of the Society of the Irish Motor Industry claims that “the increase in road tax is unjustified; given that motorists already pay over €5.6 billion per annum in motor-related taxation. SIMI would like to see all road tax being ring-fenced for non-national road improvements.”
From 1st July 2008 a new motor tax system will be introduced for all new and newly registered vehicles in the Republic. Cars that were newly registered between 1st January and 1st July 2008 will transfer to the new emissions-based system if in doing so their tax is decreased. Otherwise they will remain on the old system. All older vehicles will remain on the old system, creating a two-tier motor tax system.
The new tax system will be based on the carbon emissions of new and newly registered vehicles. As with the new VRT system, motor tax on these cars will be rated across seven bands
The bands at a glance: Band
| CO2 Emsiisions
| Motor Tax Rate
| | A | <120g/km | €100 | | B | 121-140g/km | €150 | | C | 141-155g/km | €290 | | D | 156-170g/km | €430 | | E | 171-190g/km | €600 | | F | 191-225g/km | €1000 | | G | >225g/km | €2000 |
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