• Recent Updates

  • Great post on VRT in Ireland
  • Minister Gormley’s reaction to the Red C Poll
  • Will cars registered between 1 January 2008 and 30 June 2008 be effected?
  • What is VRT?
  • July 2008 VRT Bands
  • Full C02 Emissions Chart

From the Department of the Environment:

The Minister for the Environment, Heritage and Local Government, Mr.
John Gormley T.D., today welcomed the results of a Red C
Poll conducted by the Irish Taxation Institute on the new Motor Tax/VRT
systems which will be operational from 1/7/08. On changes to the motor
tax system, the survey found that 65% of those who planned to buy a car
in the next 12 months would be more likely to change to a car with lower
emissions.

I welcome the results of this Red C Poll as it shows that the Irish
people will respond positively to smart green taxation measures. In
making the changes to an emissions based system it was my intention to
incentivise those that made the right decision to purchase cars with low
emissions. The results of the Poll are proof positive that the changes
to the Motor Tax /VRT will have the desired effect.

The survey suggests that further education of the public about the
proposed changes may lead to further increased demand for cars with low
emissions. As part of an education program it is my intention to
conduct a public information campaign, in the month before commencement
of the new system on 1st July 2008, to further highlight the positive
benefits of purchasing a car with lower emissions.

A key part of both the motor tax and VRT initiatives will be a new
mandatory labeling system for cars based on CO2 emission levels. The
new label will include consumer-friendly information on a vehicle’s
CO2 emissions and fuel efficiency. The label will be similar to the
energy rating label which already exists for many consumer electrical
goods and which is already familiar to consumers.

I am currently preparing separate legislation to give effect to these proposals. The
new labeling regime will be accompanied by an active public information
campaign which will promote the purchase of fuel efficient cars.

Here is the official line from the Department of the environment.

All new cars registered from 1 July 2008 will have their motor tax rate
based on the CO2 emissions level.  The new CO2 based system will not
apply to second-hand imports that were registered abroad prior to 2008.

New cars registered between 1 January 2008 and 30 June 2008 will
initially have their motor tax charged on the basis of the existing
engine size (c.c.) system.  However, a low CO2 emitting new car
registered between 1 January 2008 and 30 June 2008 will have its motor
tax switched to the lower CO2 based motor tax rate on first renewal of
motor tax post 1 July 2008, when the new CO2 based system commences.
New cars which are registered in the first 6 months of 2008 whose tax
would be more under the new CO2 based system will continue to pay motor
tax on the basis of engine size (c.c.).

Here are the current tax rates for each of the bands.

Co2 Emission Bands	G Co2/KM	Motor Tax
A	0-120g	€100
B	121 - 140g	€150
C	141 - 155g	€290
D	156 - 170g	€430
E	171 - 190 g	€600
F	191 - 225g	€1,000
G	226g and over	€2,000

Have a look at the cars section of this site to look at a specific car or if you want to see all cars in a particular band you can compare the full car list.

 

 

Vehicle Registration Tax or VRT is a tax that must be paid on all vehicles imported into the Republic of Ireland. Here is the official definition:

Vehicle Registration Tax is chargeable on registration of a motor vehicle in the State. All motor vehicles in the State, other than those brought in temporarily by visitors, must be registered with the Revenue Commissioners. A vehicle must be registered before it can be licensed for road tax purposes.

source: revenue.ie

Until the budget of 2007, VRT was calculated on the engine size of a Vehicles engine using the following table:

Engine size	VRT Rate
up to 1400 CC	22.5%
1401 to 1900 CC	25%
1901 CC upwards	30%

Under a new scheme to be introduced in July of 2008 the rate of VRT will be determined by C02 emissions of the vehicle. The following table shows the new categories to be used:

New Bands from July 2007

C02 Emmissions Bands	g Co2/KM	VRT Rates
A	0-120g	14%
B	121 - 140g	16%
C	141 - 155g	20%
D	156 - 170g	24%
E	171 - 190 g	28%
F	191 - 225g	32%
G	226g and over	36%

New Bands from July 2007

C02 Emmissions Bands	g Co2/KM	VRT Rates
A	0-120g	14%
B	121 - 140g	16%
C	141 - 155g	20%
D	156 - 170g	24%
E	171 - 190 g	28%
F	191 - 225g	32%
G	226g and over	36%

Here are the current Motor Tax costs for each band.

Co2 Emission Bands	G Co2/KM	Motor Tax
A	0-120g	€100
B	121 - 140g	€150
C	141 - 155g	€290
D	156 - 170g	€430
E	171 - 190 g	€600
F	191 - 225g	€1,000
G	226g and over	€2,000

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