No more importing FTO's from Japan?
Posted: Thu Dec 06, 2007 7:44 pm
ireland.com wrote:The Minister for the Environment has announced a new system of calculating car tax that he said will give motorists the incentive to buy more environmentally friendly cars from July 1st next year.
John Gormley has delivered a "carbon budget" in the Dáil that identifies how the State can reduce harmful carbon dioxide emissions to counteract climate change, to protect the economy and to meet its international obligations.
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
Minister for the Environment John Gormley
He said climate change "is the greatest challenge facing humanity over the coming century".
The Minister announced that with effect from July 1st next year, there will be a "fundamental change" in the manner in which motor tax is charged for all new cars and imported cars.
Tax will in future be charged solely on the emissions and the system will be rebalanced in favour of cars with lower emissions, he said. This system only applies to cars bought from next July.
Other cars will be taxed based on the current system of engine size, to which changes were also announced in yesterday's Budget.
Seven CO2 "bands" from A-G will determine the rate of tax payable on a vehicle.
Mr Gormley said there will be a "commonality of approach" between the motor tax and VRT systems. There will be a mandatory labelling system for cars based on their emissions levels.
This will be accompanied by a public information campaign which will promote the purchase of fuel efficient cars, the Minister said.
"I see the proposed improvements in vehicle labelling as a positive step in enabling Irish motorists to make more informed choices in buying new vehicles, and I look forward to support from the motor industry in making its introduction a success."
Motor tax rates will be graduated as one moves up the CO2 bands.
* Band A (under 120 grams per km) - €100.
* Band B (121-140 grams perkm) - €150.
* Band C (141-155 grams per km) - € 290.
* Band D (156-170 grams per km) - €430.
* Band E (171-190 grams per km) -€ 600.
* Band F (191-225 grams per km) - €1,000.
* Band G, the top band -€2,000, reflecting CO2 emissions of over 225grams per km.
This would make the FTO either €1,000 or €2,000 a year to tax (presuming it's in the top band) if you import one later than the summer of 08. Good for values of FTO's already imported and using the old tax system. Bad for people who want to bring one in themselves.