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A new
Car tax regime for new vehicles will come into operation from July 1st 2008. From this date
the old Vehicle Registration Tax (VRT) system will no longer apply. The
new system consists of a seven point emissions tax system ranging from
14% for cars with 120grms/100kms to 36% on cars 226grms/100kms and over.
(see table below) Exixting incentives for certain hybrid electric and
flexible fuel cars are being extended to July 1st 2008. Thereafter, and
in addition to the benefit of the new CO2-based VRT system, a further
top-up relief of €2,500 will be provided on the VRT payable on such
cars.
Emissions-Based VRT System
|
CO2
Emissions Bands |
g CO2/km |
VRT Rates |
| A |
0 - 120g |
14% |
| B |
121 - 140 |
16% |
| C |
141 - 155 |
20% |
| D |
156 - 170 |
24% |
| E |
171 - 190 |
28% |
| F |
191 - 225 |
32% |
| G |
226g and over |
36% |
The existing 50% VRT relief scheme for hybrid electric and flexible fuel
vehicles has been extended in its current form to June 30th, 2008, at
which point the revised VRT scheme will be implemented. From July 1st,
2008, the relief for hybrid electric and flexible fuel vehicles will be
adjusted to allow a relief of up to €2,500 in addition to the benefit of
the new VRT system. This relief will apply until December 31st, 2010.
In addition an exemption for VRT applies to electric cars and mopeds
with effect from January 1st, 2008.
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