Fuel prices rise and high-emission cars are hit by higher taxes



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€ 1.51 extra for a diesel deposit and € 1,000 on the average new car price are the main changes for motorists compared to Budget 2021.

Starting at midnight, the carbon tax increase by € 7.50 per ton will mean an increase of € 1.51 in the cost of a 60-liter diesel fill and € 1.30 for a similar amount of gasoline.

Adopting several of the recommendations from the influential Tax Strategy Group’s pre-budget review, Finance Minister Paschal Donohoe has chosen to adjust the current emissions-based tax system to enable the new international testing regime that aims to offer ratings of more realistic emissions for all. cars.

Regarding the car tax on new cars, Donohoe said the number of vehicle registration tax (VRT) bands will increase from 11 today to 20, and will apply to all new car sales starting in January 1st. According to the Society of the Irish Motor Industry (SIMI), the changes will mean an increase of € 1,000 in the price of the average new car.

While current VRT rates range from 14% to 36%, the new VRT table has a range of 7% for cars with carbon (CO2) emissions up to 50g / km up to 37% in vehicles with emissions greater than 191 g / km. .

The Minister has also adjusted the surcharge bands for NOx (nitrogen oxide), a tax that applies to all new cars and used imports.

With the replacement of the New European Driving Cycle (NEDC) system by a new system, known as WLTP (Worldwide Harmonized Light Vehicle Test Procedure), Mr. Donohoe is also changing the annual motor tax regime.

Currently, cars registered for the first time before July 2008 are classified according to engine size, while those classified after that date are taxed according to NEDC emission ratings. These cars will continue to be taxed according to these criteria.

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