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Vehicle Labelling

Introduction


Since 1st July 2008 vehicle registration tax (VRT) and annual motor tax for new cars are calculated on the basis of carbon dioxide (CO2) emissions from vehicles. Seven emission/tax bands apply and VRT and motor tax payable is determined by the relevant band for each vehicle.

The system was introduced to incentivise consumers to purchase vehicles with lower CO2 emissions, an important step in reducing national greenhouse gas emissions and in meeting Ireland’s commitments for the purposes of the Kyoto Protocol.  Carbon dioxide (CO2) is one of the principal greenhouse gases contributing to global warming.

In the context of the new CO2 based motor tax and VRT system,  the Minister introduced, in cooperation and with the agreement of the Society of the Irish Motor Industry,  a revised labelling system for new cars. The new labelling system will strengthen the existing EU requirements under Directive 1999/49/EC.

 

VRT and Motor Tax Rates

 Band CO2 Emissions (CO2g/km)   VRT  Motor Tax Rate
 A  0 - 120g  14%  €104
 B  More than 120g/km up to and including140g/km   16%  €156
 C  More than 140g/km up to and including 155g/km   20%  €302 
 D  More than 155g/km up to and including 170g/km   24%   €447 
 E  More than 170g/km up to and including 190g/km   28%  €630 
 F  More than 190g/km up to and including 225g/km   32%  €1,050 
 G  More than 225g/km  36%  €2,100 

In terms of tax, a car with lower emissions, say 130g/km – band B, would be cheaper to buy due to the lower rate of VRT and cheaper to run due to the lower road tax.

 

Vehicle Registration Tax (VRT)


VRT is payable based on the open market selling price (OMSP) of each vehicle; further information on VRT and how it is calculated is available from the Revenue Commissioners or at http://www.revenue.ie/.  


Motor Tax


Motor Tax and C02 Emissions 

 

 Annual CO2 Emissions Guide


The Society of the Irish Motor Industry (SIMI) provides details on CO2 emissions for all new vehicles for sale in Ireland. Their annual CO2 Emissions Guides are available, free of charge, from all dealers who sell new cars and on the Society’s website http://www.simi.ie/ . 


 
Sample Labels


Band A  (current motor tax rates)
Band B  (current motor tax rates) 

 

Key Elements of the Label


Section 1

This shows the seven emission bands and identifies the band for the particular vehicle to which a label is attached. The band determines that car’s environmental impact in terms of CO2 emissions and enables buyers to compare the impact of different cars and thereby make informed choices on environmental grounds.  The band also determines the VRT and annual motor tax payable on a vehicle.


Secton2

This section provides three important points of information for consumers:
the rate of VRT payable on the vehicle,
the annual motor tax payable, and
the amount of fuel required to run the vehicle over 18,000 kilometres.
 
Section 3

This ‘Environmental Information’ section of the label supplements the information provided in the first and second sections, and introduces the importance of driving behaviour.  One of the key messages for consumers is that information on the fuel efficiency and CO2 emissions for all new cars is readily available to assist them in making informed choices.

Remaining Sections

The remaining sections of the label provide essential information on the actual vehicle to which it is attached, including make, model, engine capacity, transmission, fuel type and consumption.  Importantly, the penultimate section repeats the information in section one on the actual CO2 emissions for the vehicle, highlights the fact that this information can be obtained from the vehicle’s Certificate of Conformity, and points out that some specifications of the same make/model may have lower CO2 emissions. 


Message for Consumers


The sole purpose of the labelling system iis to provide information to assist consumers in making informed choices.  It is not intended to show or suggest a preference for any particular vehicle type or vehicle technology, and should not be interpreted in that way. 

 

Further Information


National Climate Change Policy Section,
Department of the Environment, Heritage and Local Government,
Custom House, Dublin

Email: climatechangeinfo@environ.ie

 

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