Budget’13 Delivers Motor Tax Hikes
After weeks of speculation the predicted changes to the Motor Tax bands was finally confirmed by Michael Noonan in Wednesday’s budget. The number of CO2 bands in terms of motor tax for a vehicle has been increased from seven to twelve with a restructuring of the most common bands, A and B, for new vehicles. According to the Society of the Irish Motoring Industry 96 per cent of all cars sold this year fall into the Band A and Band B rates. Specific tax hikes ranged from anywhere from increases of €10 up to €126 but for example a common family car, a 1.6 litre engine, will see an increase in cost from €478 to €514 for a pre-2008 car. For a new 1.6 litre diesel Focus with CO2 emissions of 109g/km the increase will be €30 to 190.
NEW TAX RATES (based on emissions)
| Tax Band | Emissions | 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 |
Pre-2008 cars have fared particularly bad in Budget 2013
NEW TAX RATES (based on engine size)
| Old rate | New rate 2013 | Increase | |
| Engine Capacity (c.c. | |||
| not over 1000 | 185 | 199 | 14 |
| 1,001 to 1,100 | 278 | 299 | 21 |
| 1,101 to 1,200 | 307 | 330 | 23 |
| 1,201 to 1,300 | 333 | 358 | 25 |
| 1,301 to 1,400 | 358 | 385 | 27 |
| 1,401 to 1,500 | 384 | 413 | 29 |
| 1,501 to 1,600 | 478 | 514 | 36 |
| 1,601 to 1,700 | 506 | 544 | 38 |
| 1,701 to 1,800 | 592 | 636 | 44 |
| 1,801 to 1,900 | 626 | 673 | 47 |
| 1,901 to 2,000 | 660 | 710 | 50 |
| 2,001 to 2,100 | 843 | 906 | 63 |
| 2,101 to 2,200 | 885 | 951 | 66 |
| 2,201 to 2,300 | 925 | 994 | 69 |
| 2,301 to 2,400 | 962 | 1034 | 72 |
| 2,401 to 2,500 | 1005 | 1080 | 75 |
| 2,501 to 2,600 | 1204 | 1294 | 90 |
| 2,601 to 2,700 | 1251 | 1345 | 94 |
| 2,701 to 2,800 | 1294 | 1391 | 97 |
| 2,801 to 2,900 | 1342 | 1443 | 101 |
| 2,901 to 3,000 | 1390 | 1494 | 104 |
| 3,001 or more | 1683 | 1809 | 126 |
In addition to the Motor tax increases the cost of new cars is also set to rise, with 3% rise in Vehicle Registration Tax also announced.
A welcome addition was however the introduction of the dual registration plate. Currently 80% of the year’s registrations happen in the first four months therefore any change that encourages consumers to buy a car at other times of the year is a welcome development.
7th December, 2012
Filed Under: News
