{"id":15819,"date":"2017-10-06T00:59:48","date_gmt":"2017-10-05T23:59:48","guid":{"rendered":"http:\/\/www.wheelsforwomen.ie\/?p=15819"},"modified":"2022-03-07T11:52:07","modified_gmt":"2022-03-07T10:52:07","slug":"how-much-tax-does-the-motorist-pay","status":"publish","type":"post","link":"http:\/\/www.wheelsforwomen.ie\/index.php\/how-much-tax-does-the-motorist-pay\/","title":{"rendered":"How much tax does the Motorist pay?"},"content":{"rendered":"

\"tax_money_main\"<\/a>
\nWith the budget only days away we take a look at how much tax the motorist is already burdened with writes Geraldine Herbert<\/em><\/strong><\/p>\n

\u00a0<\/strong><\/p>\n

How much tax is charged on a new car ?<\/strong><\/p>\n

The Hyundai Tucson is the bestselling car in Ireland this year but how much tax is paid on a new car? If we break it down<\/p>\n

Hyundai Tucson Executive 1.7<\/strong><\/p>\n

Selling price<\/strong> – \u20ac32,070<\/p>\n

VRT<\/strong> – \u00a0\u20ac4720 (charged at 17%)<\/p>\n

VAT<\/strong>\u00a0 – \u20ac5,114(charged at 23%)<\/p>\n

So the total amount of taxes paid on this new car is \u20ac9,834 or a little under a third of the total price.<\/p>\n

\"VRT<\/a>

VRT CO2 bands<\/p><\/div>\n

 <\/p>\n

What is VRT?
\n<\/strong>Vehicle Registration Tax (VRT) is a tax chargeable on the registration of motor vehicles in the State, and has been in place since 1993. VRT is levied as a percentage of the open market selling price (OMSP) of a passenger motor car. Since 1 July 2008, both VRT and Motor Tax on private motor cars have been calculated on the basis of CO2 emissions, so that motor cars with higher CO2 emissions attracted a higher tax liability.<\/p>\n

 <\/p>\n

 <\/p>\n

How much Motor Tax do we pay?
\n<\/strong>Motor tax depends on CO2 emissions so using the example above the Hyundai Tucson Exec 1.7 has 119g\/km of Co2 so it falls in Band A4 and costs \u20ac200 a year for Motor Tax.<\/p>\n

However if you bought a car prior to July 2008 you are paying motor tax on the engine size of the car. In 2008, the Fianna F\u00e1il-Green Party coalition changed the VRT and motor tax system from one based on engine capacity to the current one based on Co2 emissions. As a result of this change and huge improvements in the performance of diesel cars, sales dramatically shifted in favour of diesel.<\/p>\n

\"Co2<\/a>

Co2 Bands<\/p><\/div>\n

\u00a0<\/strong>For example a 2008 Ford Focus 1.6 diesel costs \u20ac514 a year in motor tax whereas the same car bought the following year\u00a0 \u00a0a 2009 ford Focus 1.6 Diesel\u00a0 is just \u20ac200.<\/p>\n

 <\/p>\n

What about Fuel?
\n<\/strong>Tax is by far the single largest component of the pump price. This has risen very considerably in recent years. Budget 2017\u00a0 left taxes on petrol and diesel unchanged. The components are:<\/p>\n

\"Pic<\/a>

Pic from Irish Petroleum Industry Association<\/p><\/div>\n