How is the CO2 rating calculated?

The Department of Finance says that the CO2 emission rating for each new car being registered will normally be determined based on the emissions information contained in the model's Certificate of Conformity, a document which, since 2001, European law has required to contain such information. Car sales brochures normally contain a CO2 emission figure in the section under economy.

For used car imports, the CO2 rating will have to be declared on the form VRT4 (Declaration for registration of a used vehicle) by the person registering the vehicle. The declaration will be required to be supported by documentary evidence of the CO2 rating, for example, a Certificate of Conformity, a previous registration certificate, or a certificate from the manufacturer or a main distributor, provided in each case the CO2 rating is included; or a certificate from an organisation approved by the Revenue Commissioners to provide such certificates.

Where a certificate or a measurement is not available or fails to satisfy the Revenue Commissioners, the VRT tax charged could be set at the maximum VRT rate allowable. Such a VRT rating would be open to appeal through the VRT appeals system.

Motor Tax rates increase

There was a sting in the tail of the Budget in terms of annual motor tax rates. The rates of motor tax will rise by 9.5 per cent for cars below 2.5 litres and 11 per cent for larger cars from 1 February 2008.

But the even stronger sting comes in July when motor tax bands on all new cars sold from then on or used cars registered for the first time in Ireland, will have a new annual motor tax charge. Minister for the Environment John Gormley who introduced the new system said that like the VRT system this will be based on CO2 emissions. Existing cars will continue to be taxed on the current basis of engine size.

There will be seven bands in total, ranging from €100 a year for the greenest cars, to €2000 for cars with the highest emissions ratings. It will result in savings of more than €300 for motorists who chose the lowest emission vehicles.

Motor tax rates will be graduated as one moves up the CO2 bands, as follows: Band A, which corresponds to CO2 emissions of under 120grams per kilometre - motor tax rate of €100. Band B, which corresponds to CO2 emissions of between 121 and 140 grams per kilometre ? motor tax rate of €150. Band C, which corresponds to CO2 emissions of between 141 and 155grams per kilometre ? motor tax rate of €290. Band D, which corresponds to CO2 emissions of between 156 and 170 grams per kilometre ? motor tax rate of €430. Band E, which corresponds to CO2 emissions of between 171 and 190grams per kilometre ? motor tax rate of €600.

Band F, which corresponds to CO2 emissions of between 191 and 225 grams per kilometre ? motor tax rate of €1,000. Band G, the top band ? motor tax rate of €2,000, reflecting CO2 emissions of over 225grams per kilometre.

A key part of the motor tax and VRT initiatives will be a new mandatory labelling system for cars based on CO2 emission levels. This will be accompanied by an active public information campaign which will promote the purchase of fuel efficient cars.

Comments (2) »

mr
written by john spillane, March 06, 2008

Very useful article as many car dealers i've visited were unable/unwilling to give info regarding new vrt rates and road tax rates wanting a sale prior to july '08 i guess. somethings never change in this country!

am not so sure give my research...
written by Ed, February 19, 2008

Kia sales reps openly state that both vehicles (theirs and my current car) will depreciate in July 08 i.e. the pre-tax prices are not being adjusted by the Manufacturer.
Nissan sales rep stated that the lower CO2 car prices will NOT drop in July. They were very confident that the manufacturer prices would be adjusted before July (along with everyone elses) i.e. up on Diesel cars and lowered on Petrol. The example given by my local dealer was the diesel BMW's...."surely no one thinks a diesel BMW will drop between €5000 and €8,000 due to a VRT change in July" (some models are moving from 30% down to 20% VRT).
Seat were unsure themselves having heard rumours that the Main manufacturers were looking to 'adjust' prices but nothing was confirmed. They were certain however that used prices would fall on diesels due to lower annual car tax.
Mazda felt there would be very little change to their prices (a reflection of how their vehicles fall into the new emission based system).
The examples could go on...
Is the government going to protect us from a change in the pre-tax price?
Or yet again is there a realistic chance that Irish car prices will be adjusted so we can maintain our 30% difference with car prices in Europe?

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