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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

 

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