Gormley unveils new car label system

Minister for the Environment John Gormley this morning launched a new vehicle labelling system for new cars to allow consumers compare fuel efficiency, Vehicle Registration Tax (VRT) and road tax.

The new rating system resembles energy efficiency labels that are already on kitchen appliances in electrical shops. The system will apply at the point of sale from July 1st, coinciding with the introduction of new tax rules.

Mr Gormley said the new system would demonstrate that newer cars with more fuel efficient engines can save consumers money, while still being kinder to the environment.

The Minister put four cars on display at the Custom House to make his point. The car with the largest engine was a 1.9 TDI, 105BHP, diesel Skoda Octavia Elegance, which attracts VRT of 16 per cent. Annual road tax is just €150 and the estimated fuel use for 18,000 kilometres is 882 litres. The Octavia attracted a B energy rating.

Next was a Peugeot 308 SV, HDI, giving performance of 110BHP, with a 1.6HDi diesel engine. VRT is 16 per cent, road tax €150, and fuel consumed over 18,000 kilometres is expected to be 846 litres. The 308 SV also had a B rating.

The retro-looking small car, the Fiat 500 1.3 litre, with a 16 valve multijet diesel engine attracts VRT at just 14 per cent and annual road tax is just €100. It will consume 756 litres of diesel over 18,000 kilometres. The Fiat attracts an A rating.

Also on display was the Toyota Prius 1.5 Hybrid Synergy Drive - similar to the Minister’s State car - which attracts 14 per cent VRT. Annual road tax is €100 and it consumes 774 litres per 18,000 kilometres.

In all there are seven bands in the rating system from A to G with G bands attracting VRT at 36 per cent from July. G band vehicles will also attract road tax at €2,000 per year.

“From July 1st anyone buying a new car can make a positive choice on investment and environmental grounds by purchasing a low CO2 emitting vehicle”, said Mr Gormley.

The new labelling system will be introduced initially in co-operation with the Society of the Irish Motor Industry, but will become a legal requirement by the end of the year.