Policy status:In Force
Date Effective:2008
Policy Type:Economic Instruments>Market-based instruments>White certificates, Economic Instruments>Fiscal/financial incentives>Taxes
Policy Target:Transport>Passenger
Agency:Ministry of Environment, Heritage and Local Government
Description:As part of its Budget 2008, the Irish government announced its intention to reform its motor taxation policies to favour more environmentally friendly vehicles, with lower CO2 emissions and better fuel economy. The Vehicle Registration Tax (VRT) rate applicable to new cars registered on or after 1 July 2008 will be determined by the CO2 emission rating of the car and will no longer be related to engine size. A 7 band CO2 emissions system - A to G - will apply. It will be underpinned by a new CO2 Emissions Labelling System for cars, on the lines of the energy efficiency labels for white goods, to be introduced by the Department of the Environment, Heritage and Local Government. 7 VRT rates, ranging from 14% to 36%, depending on the cars CO2 emission level, will continue to be applied to the Open Market Selling Price of the car. Rates will range from EUR 100 a year for the least CO2 emitting cars, to EUR 2,000 for cars with the highest emissions rating. Existing incentives for certain hybrid electric and flexible fuel cars are being extended to 1 July 2008. Thereafter and in addition to the benefit of the new CO2 based VRT system, a further top-up relief up to Eur 2,500 on the VRT payable on such cars will be available. In an effort to foster the use of electric cars and electric mopeds these are being exempted from VRT. This exemption will apply from 1 January 2008.

Last modified: Thu, 19 Jul 2012 11:36:13 CEST