THE GOVERNMENT has been criticised by both car buyers and the motor industry for failing to fully inform car buyers about the new tax system being introduced from July 1st.
Some 86 per cent of motorists surveyed said that the Government has not done enough to inform consumers about the new vehicle registration tax (VRT) system. The survey, carried out last week by online car parts retailer MicksGarage.ie with 450 motorists, also revealed that just one in three motorists (34 per cent) are aware of the level of carbon emissions from their vehicles.
In an effort to help consumers make more informed decisions about their car purchases and arrest the uncertainty which has lead in part to a 23 per cent drop in car sales last month, the Society of the Irish Motor Industry (Simi) has launched an information campaign aimed at helping consumers understand the changes to the Vehicle Registration Tax (VRT) and the road tax system in July. They have also launched a facility on the Simi website (www.simi.ie) for motorists to calculate the tax changes that will apply to their potential purchase from July 1st.
From July 1st, VRT on new and privately imported used cars will change from being based on the cubic capacity of the car, to being based on the CO2 emissions of the car. This means that the rate of VRT, which once varied from 22.5 per cent to 30 per cent will now range from 14 per cent for cars with less than 120g/km to 36 per cent for cars that emit 226g/km or more of CO2.
Annual road tax for new cars and privately imported used cars from July 1st, will also be taxed according to their C02 emissions, with a new low rate of road tax of €100 per annum for cars with emissions of less than 120g/km, rising to €2,000 per annum for cars with emissions of over 226g/km.
All this has understandably led to much confusion amongst the car buying public. The changes, it seems, are difficult for the public to understand, with many would-be buyers not knowing whether to buy now, or later. This confusion, as well as uncertainties over the economy, has led to a dramatic decrease in the number of new cars bought, especially last month.
The Simi website allows consumers to check the CO2 emissions of their car of choice, then enter this into the calculator along with the cubic capacity of the car.
This then shows what the current rate of VRT and road tax is, and how it compares to the new rates from July 1st.