Irish VRT.ie

In considering moving to a more CO2 emissions related VRT system, either partly or fully, there are a number of issues that have to be taken into account, including reasons for making such a move on a phased basis over a period of years.

• Too rapid a move would adversely affect especially the second hand car market.
• Given the yield from VRT it would be very unwise to put such a level of revenue at risk, even if the risk is rather limited, all at the one time.
• Cars result in costs and have adverse effects on society beyond those arising from CO2 emissions and consequently there is a strong case to be made for not having VRT, and indeed motor tax, even in the long term, set solely in relation to CO2 emissions.
• Unless it is planned to abolish VRT, or reduce significantly the yield from VRT, the changes made should be broadly revenue neutral, at least in the short term.
• Success in reducing CO2 emissions will reduce revenue over time.
• Any new or revised VRT system must by able to be applied to second hand imports as well as to new cars.
• Any short term, or immediate, changes being made should be such that they do not prevent further progress being made or predetermine the longer-term structure and for the VRT system.
• The changes should be such that they facilitate, if so desired, the ongoing progress towards making VRT ever more CO2 emissions related.
• Any more CO2 emissions related VRT system should take account of the Emissions Labelling system the Department of Environment, Heritage and Local Government are considering rather than adopting a different approach.
• VRT is effectively a self-assessment tax and the VRT system should be as easy as possible to understand, apply and administer.
• Any new VRT system should be internally balanced and consistent as a tax.
• Introducing an partly or fully CO2 emissions related system across all new and second hard cars would take 6 to 8 months to technically implement. (Changes in existing rates and bands or adding an extra band could be technically implemented at fairly short notice.)
• SIMI have also stressed that, as their members, order cars well in advance, they would need reasonable advanced notice of any significant changes being made.

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