New rules for CO2-based car taxes come into operation next month.
In last December's budget the government announced two separate changes to the ways in which cars are taxed in Ireland. From next month, all new cars purchased will be taxed under the new regime.
The basic change is that where taxes used to be calculated on the size of the engine - a figure that meant very little in terms of performance or pollution - they will now be based on the amount of CO2 produced. Carbon dioxide is not a polluter; we each of us breathe out a kilogramme of it every day. But it is one contributor to our greenhouse gas emissions and we are committed to reducing our output.
The new figure to learn is 'gCO2/km' - grammes of CO2 per kilometre travelled. This will become as familiar to motorists as miles-per-gallon used to be.
How the new tax system works:
The 2 taxes being changed are Vehicle Registration Tax, paid when the car is purchased, and annual Road Tax paid each year to your local authority.
For VRT, the old system of 3 bands based on engine size is replaced with a new system of 7 bands based on emissions.
For Road Tax, the new bands will decide your tax bill and the bigger and dirtier your engine the higher that bill will be.
These changes apply only to cars bought from July 2008 onwards. Existing cars will stay on the existing system for life.
The tax band is decided by the emissions level when the car is new. Your tax bill will not change depending on how the car fares in the NCT emissions test.
If you have bought a car in the first six months of 2008 then you have a choice. When you first renew your car tax you can choose which of the two systems - old and new - you want to place your car in. Clearly you will choose whichever one is cheaper, and the car will stay in that tax band for life thereafter.
| Band | gCO2/km | VRT on OMSP | Road tax per year |
|---|---|---|---|
| A | 0-120 | 14% | €100 |
| B | 121-140 | 16% | €150 |
| C | 141-155 | 20% | €290 |
| D | 156-170 | 24% | €430 |
| E | 171-190 | 28% | €600 |
| F | 191-225 | 32% | €1,000 |
| G | 226 & over | 36% | €2,000 |
Revised sample car prices and road tax charges as of 5/6/08
| Model Tax * | L | Price | gCO2/km | Band | Road Tax (Current) |
Price Difference (Estimated) |
New Road (Difference) |
|---|---|---|---|---|---|---|---|
| Ford Mondeo (Zetec) | 1.6 | €26,095 | 172 | E | €428 | +4.2% | €600 (+40%) |
| Ford Focus (Zetec) | 1.4 | €23,640 | 157 | D | €320 | +2% | €430 (+34%) |
| VW Golf (Base) | 1.4 | €21,399 | 165 | D | €320 | +1.7% | €430 (+34%) |
| Opel Astra (Life) | 1.4 | €21,045 | 146 | C | €320 | -1% | €290 (-9%) |
| Nissan Qashqai (dCI SE) | 1.5 | €29,000 | 145 | B | €343 | -8.6% | €290 (-15%) |
| Skoda Octavia (Ambiente) | 1.4 | €19,605 | 168 | D | €320 | +3.4% | €430 (+34%) |
| Opel Corsa (Life) | 1.0 | €16,000 | 134 | B | €165 | -4.7% | €150 (-9%) |
All models are petrol bar Nissan Qashqai
* Prices before and after 1 July were obtained from a random selection of dealerships nationwide, some include delivery & metallic paint, other are list price only.Price difference calculated on like-for-like basis i.e. all-inclusive price before and after 1/7/08 or list price before and after 1/7/08.
Ford prices from Finglas Ford Centre, D11
Volkswagen price from Kevin Connolly Volkswagen, Ballina, Co. Mayo
Opel prices from Joe Duffy Opel, D11
Nissan price from Randle's Nissan, Killarney, Co. Kerry
Skoda price from O'Leary's Skoda, Enniscorthy, Co. Wexford
