New car tax labels to be revealed



A labelling system showing consumers how much Vehicle Registration Tax and motor tax they will pay on new cars will be published by Environment Minister John Gormley today.

The system follows the Government decision in the last budget to link the taxes to a car’s carbon dioxide emissions, rather than its engine size.

The aim of the Government’s changes to VRT and motor tax is to persuade consumers to purchase cars with lower carbon emissions.

As part of the strategy, seven bands of emissions have been created, which will determine the amount of tax the purchaser of a new car will pay from 1 July.

Today, consumers will find out what these labels will look like. It is widely expected they will resemble the energy-rating tags currently on electrical goods, like fridges and washing machines.

If you buy a car in the first low emissions category, motor tax will be just €100.

However, if you buy a heavy fuel use car in band seven, you can expect to shell-out €2,000 each year.

News from RTE NEWS

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