In his budget speech earlier today, Minister Michael Noonan confirmed an
overhaul of the road tax regime. The number of CO2 bands which determine the rate of road tax for a vehicle has been increased from seven to twelve.
Commenting on the changes Motorcheck.ie Co-Founder Shane Teskey said "Given the relatively small increase applied to the less polluting cars I believe we can now expect car manufacturers to work even harder at bringing their key models in at lower CO2 rates. Today's market has just over X% of the range under 120g/km - a figure which will likely increase following the revised rates."
Band A which is the most popular tax band in Ireland and accounts for 53% of total sales this year has been split into five sub-divisions meaning the rate of tax will increase from €10 to €40 depending on the CO2 output of the car.
Band B, the second most popular band accounting for 38% of sales has been split into two sub-divisions. The increase here will be either €45 or €55 per annum again depending on the CO2 rate of your car.
NEW TAX RATES
Tax Band | Emmissions | New Tax Rate | Difference |
A0 | 0 | €120 | -€40 |
A1 | 1 - 80 | €170 | €10 |
A2 | 81 - 100 | €180 | €20 |
A3 | 101 - 110 | €190 | €30 |
A4 | 111 - 120 | €200 | €40 |
B1 | 121 - 130 | €270 | €45 |
B2 | 131 - 140 | €280 | €55 |
C | 141 - 155 | €390 | €60 |
D | 156 - 170 | €570 | €89 |
E | 171 - 190 | €750 | €73 |
F | 191 - 225 | €1,200 | €71 |
G | <225 | €2,350 | €92 |
HOW THE CURRENT MARKET LOOKS
Today there are 3,810 new cars available in the Irish market. The table below demonstrates the number of cars available in each new band.
Tax Band | Cars Available | % |
A0 | 6 | 0% |
A1 | 0 | 0% |
A2 | 140 | 4% |
A3 | 216 | 6% |
A4 | 666 | 17% |
B1 | 478 | 13% |
B2 | 671 | 18% |
C | 628 | 16% |
D | 471 | 12% |
E | 211 | 6% |
F | 205 | 5% |
G | 118 | 3% |
Total | 3810 | 100% |