{"id":22134,"date":"2020-10-13T16:48:49","date_gmt":"2020-10-13T15:48:49","guid":{"rendered":"http:\/\/www.wheelsforwomen.ie\/?p=22134"},"modified":"2021-10-13T11:02:26","modified_gmt":"2021-10-13T10:02:26","slug":"what-budget2021-means-for-motorists","status":"publish","type":"post","link":"https:\/\/www.wheelsforwomen.ie\/index.php\/what-budget2021-means-for-motorists\/","title":{"rendered":"What Budget 2021 means for motorists"},"content":{"rendered":"<p><strong><em><a href=\"http:\/\/www.wheelsforwomen.ie\/wp\/wp-content\/uploads\/2017\/08\/budget_2018_main.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-full wp-image-17737\" src=\"http:\/\/www.wheelsforwomen.ie\/wp\/wp-content\/uploads\/2017\/08\/budget_2018_main.jpg\" alt=\"\" width=\"850\" height=\"434\" srcset=\"https:\/\/www.wheelsforwomen.ie\/wp\/wp-content\/uploads\/2017\/08\/budget_2018_main.jpg 850w, https:\/\/www.wheelsforwomen.ie\/wp\/wp-content\/uploads\/2017\/08\/budget_2018_main-300x153.jpg 300w, https:\/\/www.wheelsforwomen.ie\/wp\/wp-content\/uploads\/2017\/08\/budget_2018_main-768x392.jpg 768w\" sizes=\"auto, (max-width: 850px) 100vw, 850px\" \/><\/a>Public Expenditure Minister Michael McGrath and Finance Minister Paschal Donohoe have just presented the 2021 Budget. From fuel tax to VRT, here&#8217;s everything motorists need to know&#8230;<\/em><\/strong><\/p>\n<p>There were no real surprises in the budget and as expected the main focus was on public health spending in light of the coronavirus. The key take out for motorists is that fuel will increase, so too will motor tax for some motorists and new car buyers will face higher prices on larger and more emitting models. Here\u2019s our summary of what the changes mean for you&#8230;<\/p>\n<p>&nbsp;<\/p>\n<p><strong>1) VRT<br \/>\n<\/strong>Changes to the VRT tax bands means that there will now be a new 7% rate for EVs and a 9% rate for PHEVs. In addition, the current 11 bands would increase to 20 with a new top rate of 39% applied to all vehicles with emissions over 191g\/km. In essence, we will see new car buyers who opt for more sustainable vehicles such as hybrid electrics and EVs benefit with better value through lower VRT, while petrol and diesel cars with higher emissions will be more expensive. The most impacted will be larger vehicles including SUVs, for example the VW Tiguan will see a minimum increase of just under \u20ac4,000.<\/p>\n<p><strong>2) Fuel increase<\/strong><br \/>\nThe decision to increase carbon tax will see an increase of\u00a0 \u20ac1.30 to an average 60-litre tank of petrol and \u20ac1.51 to a tank of diesel.<\/p>\n<p><strong>3) Motor tax<br \/>\n<\/strong>In line with VRT changes the motor tax bands will be tweaked. The good news is that 88% of motorists will see no increased taxes,\u00a0 7% of drivers of mostly older vehicles will have to pay an extra \u20ac10 a year while an extra charge of \u20ac30 to \u20ac50 is in store for around 4% of motorists driving high emitting vehicles. Motor Tax rates will remain unchanged for all cars in the engine sized regime<\/p>\n<p>&nbsp;<\/p>\n<p><strong>4) Increase in the Nox charge<br \/>\n<\/strong>A change to the bands of the NOX charge will mean that the lower \u20ac5 rate per mg\/km would only apply to the first 40mg\/km and not up to 60mg\/km as it is currently. This applies to all cars when first registered, i.e. new cars and imports.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>5) Electric &amp; Hybrid Cars<br \/>\n<\/strong>That \u20ac5,000 VRT rebate for EVs will only apply to cars costing up to \u20ac40,000 and will then be tapered up to \u20ac50,000, it will not apply to cars in excess of \u20ac50,000.\u00a0 The \u20ac1,500 VRT rebate for hybrids and \u20ac2,500 plug-in hybrids is to be phased out by the end of this year.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>6) Imported Used Cars<br \/>\n<\/strong>Used imports will have their CO2 values uplifted to a level equivalent with the new WLTP test to which all new cars are subject so VRT and Motor tax is set to increase. e.g. below<\/p>\n<p>Petrol\u00a0 \u00a0 y = x(0.9227) + 34.554<br \/>\nDiesel\u00a0 \u00a0 y = x(1.1405) + 12.858<\/p>\n<p>An NEDC tested petrol car with a CO2\u00a0 value of 110g\/km on the vehicle registration documentation would under the current system attract a rate of 16%. Revenue will now recalculate this value to a new CO2 value that is\u00a0 equivalent to a WLTP as follows<\/p>\n<p>y=110(0.9227) + 34.554\u00a0 \u00a0y= 134<br \/>\nThe car is then subject to an 18% VRT rate<\/p>\n<p>&nbsp;<\/p>\n<p><strong>13th October 2020<\/strong><\/p>\n<p><strong>Geraldine Herbert<\/strong><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Public Expenditure Minister Michael McGrath and Finance Minister Paschal Donohoe have just presented the 2021 Budget. From fuel tax to VRT, here&#8217;s everything motorists need to know&#8230; There were no real surprises in the budget and as expected the main focus was on public health spending in light of the coronavirus. The key take out [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":17738,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[117,77],"tags":[195,4038,768,3183,354,3435,5838,2906,2866],"class_list":["post-22134","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest","category-news","tag-budget","tag-budget2021","tag-electric-cars","tag-evs","tag-fuel","tag-hybrids","tag-motor-tax","tag-phev","tag-vrt"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What Budget 2021 means for motorists - wheelsforwomen.ie<\/title>\n<meta name=\"description\" content=\"Public Expenditure Minister Michael McGrath and Finance Minister Paschal Donohoe have just presented the 2021 Budget. 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