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New Carbon Dioxide (CO2) Motor Tax System

06/03/08

Mr John Gormley, T.D., Minister for the Environment, Heritage and Local Government, today (5 March 07) clarified the position in relation to introduction of the new CO2 based motor tax system.  This clarification followed the passing of amendments to the Motor Vehicle (Duties and Licences) Bill 2008 at committee stage of the Bill today by the Dail Select Committee on the Environment, Heritage and Local Government.

Minister Gormley stated that all new cars registered from 1 July 2008 will have their motor tax rate based on the CO2 emissions level.  The new CO2 based system will not apply to the import of pre 2008 cars.

New cars registered between 1 January 2008 and 30 June 2008 will initially have their motor tax charged on the basis of the existing engine size (c.c.) system.  However, a low CO2 emitting new car registered between 1 January 2008 and 30 June 2008 will have its motor tax switched to the lower CO2 based motor tax rate on first renewal of motor tax post 1 July 2008, when the new CO2 based system commences.  New cars which are registered in the first 6 months of 2008 whose tax would be more under the new CO2 based system will continue to pay motor tax on the basis of engine size (c.c.).

“I am pleased to introduce this Committee Stage Amendment  which will effectively allow  new cars with low carbon emissions into the new emissions based motor tax system post 1 July 2008.  The purpose of introducing the emissions based system in the first place was to encourage and incentivise as many people as possible to purchase ‘greener cars’   Today’s amendment will ensure that additional car buyers will benefit from the scheme,” said the Minister.

ENDS

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