New car tax regime highlighted

A new consumer information campaign aimed at raising awareness of the new road tax and vehicle registration tax (VRT) system …

A new consumer information campaign aimed at raising awareness of the new road tax and vehicle registration tax (VRT) system has been unveiled by the Society of the Irish Motor Industry (Simi).

Under the new system, which is based on CO2 emissions and is due to come into effect in July, buyers of new cars with lower emissions will see their annual road tax and vehicle registration tax fall considerably. In contrast, those buying new cars with higher emissions will be hit with significantly higher bills.

Used cars will remain subject to the old tax system.

The changes, which were introduced under this year's Budget, are aimed at reducing Ireland's carbon footprint. However, Simi is concerned that consumers may be confused by the new system.

"There is a lot of confusion regarding the new VRT and road tax changes which are based on the CO2 emissions of the vehicle," said Simi director general Alan Nolan.

"Obviously the environmental impact and the cost of your preferred vehicle are some of the most important issues when it comes to buying a new car. Many people will now be able to avail of the opportunity to make substantial savings by buying before July and the new system will work towards a cleaner environment for 2008 and beyond, it is a win-win situation for the consumer."

To help alleviate any confusion, the organisation has produced an infromation leaflet for consumers covering the most common questions, and has created a new tool for its website that will calculate tax changes to new vehicle purchases once the new VRT and road tax system is in place.

"We fully endorse the Government's objective of reducing CO2 emissions from transport and we believe that the introduction of the new system provides an opportunity for Ireland to make substantial progress towards meeting our Kyoto targets," he said.

Ciara O'Brien

Ciara O'Brien

Ciara O'Brien is an Irish Times business and technology journalist