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AA IRELAND has said reported plans to change Ireland’s system of vehicle registration – which would probably see a significant increase in the price of new cars from next year – is understandable but a disappointment for motorists.
The Auto Trade Journal reports that the current ‘A’ band representing low-emissions vehicles is to be split in four – meaning that some cars which currently qualify for tax at 14 per cent of their market prices could see the rate increased to 17 per cent.
Similar incremental bands are reportedly planned for less efficient vehicles – which could see a serious increase in the tax paid by motorists to register a new car.
Conor Faughnan of AA Ireland offered a mixed reaction to the reports. ”On the one hand it is very disappointing – motorists will be very angry when they read about it,” he said.
“Tax on cars is going to increase, then there’s the additional tax that we’re now paying on motor insurance costs, and the ongoing expansion of the motor tax that everybody pays.”
Faughnan said the reform of vehicle registration taxes in 2008, which had been intended to incentivise the purchase of low-emissions cars, had been tremendously effective – but the system had not been future-proofed at the time.
“The legislation at the time stayed silent on what would happen if car technology continued to improve, and it has done,” he said.
Using 2008 emissions standards as the basis for taxation in 2013 is hopelessly out of date. It’s like using six-year-old standards for modern mobile phones.
The adaptation of the system, which had failed to anticipate improving emissions standards in new cars, meant it was now possible to pay less motor tax on a €55,000 luxury car than it was on “an eight-year-old petrol runabout”.
“We do understand that context, but there’s no doubt that how you dress it up: this is a tax increase,” he said.
Motorists were already “extremely angry” at the rising costs of motor tax and fuel, and an increase in the outright cost of buying a car in the first place “might make us more reluctant to believe future promises”, he said.
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The theory was that the emissions-related tax was a green tax and not a greed tax. We were conned yet again. In Ireland you can fool most of the people most of the time.
No no, in Ireland you can fool most of the people, most of the time. And the ones that arent, will be hit with something else.
Dude wats with d flag …..? Wat u tryn to say don’t mind u shown a union jack but putting a harp in it ? I take it u just wana Anoy people ??
Patrick. That flag is not the Union Jack. I don’t know what it is but it is missing items from Union Jack.
@Patrick – grow up
how many taxes do we have to pay to run one item,road tax,vat on petrol,vehicle registration tax,insurance levy which was caused by quinn insurance,i rely on my car for going to work to earn a wage where i pay more tax to fund this regime,id be better off lying at home in bed and selling the car at this rate,when we these people join the real world its getting unbearable now.
Well said.
As myself and many before have said countless times! Abolish motor tax, and increase the price of fuel to compensate for lost revenue! This has to be the biggest no brainier ever! Rebates could easily be hammered out for those people that drive high mileage because of work! I mean look how many public servants currently dealing with motor tax would suddenly be available to take on that particular responsibility. Then of course, by going down this avenue every person driving a vehicle pays the tax. I just can’t understand why the government hasn’t gone down this road. It’s so bloody simple!
Because Rodrigo my learned friend, Irish governments don’t do simple , they are , just simple.
Increase fuel prices? Our fuel costs are high enough with adding to it. If I didn’t pay motor tax and current prices were around €1.20 I’d still think that was high. We already pay near 70c for every litre. When I lived in the UK, my yearly motor tax was €106 for a 2002 VW Bora 1.9 TDI.
Absolutely right. VRT is the stamp duty of car sales and is as volatile and unsustainable as that on property. It also forces Irish drivers to compromise on safety. It charges those that use their cars least the same as those that use it the most and so contributes to congestion. But why should I the politician care being driven about in my state paid for merc?
You’ve just pointed out why the government won’t do it. ” it’s bloody simple “
Serious question. I thought Europe saw VRT tax as illegal or something? And now they’re increasing it?
Doesn’t really matter to me as I will never afford a new car anyway but increasing road tax is going to kill me. I can’t pay for it already! Bloody ridiculous. They’re really giving people an incentive to work… Idiots!
Increase taxes on a market that has been hammered in the last few years. More genius from this government.
I dont mind, once it doesnt have 13 on the reg. Haven’t you heard..we’re not broke, we’re all just supersticious, thats the reason we’re not buying brand new cars!
Once again, our so called leaders have shown how incompetent, foolish and out of touch with the people they really are. WE NEED TO DO SOMETHING ABOUT THESE IDIOTS NOW!
Question: Whats the fairest way for this government to increase revenue via motorists?
1: Increase road tax
2: Increase the cost of fuel
3: Increase VRT
Answer: Government picks 4. Hand a billion euro to unguaranteed unsecured bondholders on October 1st, then increase all of the above in the budget claiming you have no choice due to lack of funds.
So right if this was France we motorist would block every road in the country to stop this,maybe that’s why the French government are reducing fuel costs by 5cent a liter temporarily while this petrol price spike lasts.Noonan has already refused to consider this.Irish motorist are a cash cow for the government.
Final nail in a dying car industry
Isn’t Conor Faughnan a doom and gloom merchant?
His organisation is about as useful as the Nurses Union at fighting for proper conditions for members
Don’t worry noonan and the filthy traitor minister pigs in the dail wont feel the burden of any of these taxes or increases in fuel, sure they will just right it off with the expenses for there underwear and travel cost. This country is a joke the french would close there country down for days if they were being economically raped like we are week in week out…….but oh no not in Ireland sure what can ya do like, ya can’t do it there the government there too powerful and whatever other worthless excuses that seem to be coming from people!
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