Tuesday, March 18, 2008

2008 Road Tax

So, environmental history is written. The Minister of Environment, Heritage and local Government John Gormley delivered recently the first Carbon budget in the history of the State. The budget announcement contains a series of measures aimed at tackling climate change like the new emissions based system for motor tax with significant savings for new low emission vehicle cars and a mandatory environment labelling system for new cars.

The new motor tax, starting at 1 July 2008, is changing from being based on engine size to one based on CO2 emissions. There will be seven bands, A-G ,and the corresponding fees range from €100 a year for the greenest cars, to €2000 for the most polluting. Whereas those gas-guzzling cars will be hit hard the savings for motorists with the lowest emission vehicles will be more than €300.

The new emissions motor tax system will apply to all new vehicles and newly imported cars registered on or after July 1 next year. Existing cars will continue to be taxed on the current basis of engine size. Minister Gormley said: “The clear objective of this new motor tax system is to influence the purchasing decisions of consumers by rewarding the buyers of low-emitting cars and charging a premium on less efficient vehicles. From 1 July, anyone registering a new car can make a choice for the environment by purchasing a low CO2 emitting car, and thus enjoy a lower rate of motor tax. Alternatively, if the choice is to purchase a high CO2 emissions car, a higher rate of motor tax will apply.”

On top of that, an introduction to a mandatory labelling system for cars from 1st July was regarded vital, to show clearly to consumers the environmental impact of every vehicle. This will be accompanied by a public information campaign which will promote the purchase of fuel efficient cars.

Band A: CO2 emissions of under 120grams per kilometre - motor tax rate of €100.
Band B: CO2 emissions between 121 and 140 grams per kilometre – motor tax rate of €150.
Band C: CO2 emissions between 141 and 155grams per kilometre – motor tax rate of €290.
Band D: CO2 emissions between 156 and 170 grams per kilometre – motor tax rate of €430.
Band E: CO2 emissions between 171 and 190grams per kilometre – motor tax rate of €600.
Band F: CO2 emissions between 191 and 225 grams per kilometre – motor tax rate of €1,000.
Band G: top band – CO2 emissions of over 225grams per kilometre - motor tax rate of €2,000.


Com' on, I mean. It is a bit ridiculous now isn't it. Its all about generating revenue, ha of course the olympics are closing up..

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