Almost two thirds of people planning to buy a new car in the next year would buy a vehicle with lower emissions if it resulted in paying lower motor tax, a survey has found.
The poll - carried out by Red C for the Irish Taxation Institute (ITI) - found that 55 per cent of people would also consider changing their current car if it meant a lower tax bill.
According to the ITI, the survey showed a strong awareness of pending changes in the car tax and vehicle registration system but a lack of knowledge of the specific details.
Some 66 per cent of the 1,001 people surveyed said they were aware of the pending changes to the vehicle
(VRT) system. A total of 59 per cent say the changes to VRT will encourage purchase of vehicles with a lower emissions rating.
Six out of 10 people said their current car was bought second-hand and a quarter said they planned to buy a car in the next 12 months.
Six out of 10 claim the new VRT changes would make them more inclined to purchase a car with lower emissions. But those who bought their current car second-hand are least inclined to do so.
On motor tax, 65 per cent of people who planned to buy a car in the next 12 months said they would be more likely to buy one with lower CO2 emissions if it meant saving money.
A total of 55 per cent said they would be more likely to change their existing car to one with lower CO2 emissions in order to save on motor tax.
Under the new system due to come into effect on July 1st, buyers of new cars with lower CO2 emissions will see a reduction in their annual road tax. Vehicle registration tax will also be lower, depending on the emissions rating of the car.
Currently, a car below 1,000cc engine capacity is liable to €165 in motor tax per year. A car between 1,801cc and 1,900cc attracts tax of €560, while a higher-powered vehicle of between 2,101cc and 2,200cc is liable for €791 in motor tax.
Under the new system, cars will be classed in a series of CO2 ‘emissions bands’. Vehicles in the lowest class A band, with emissions of between 0 and 120g of CO2 per kilometre will pay €100 in motor tax. Those in the class G band, at the highest end, will be liable for motor tax of €2,000 per annum.
Used cars will remain subject to the old tax system.
President of the ITI, Joan O’Connor, said the strong showing of those who will move to more fuel-efficient cars is “particularly encouraging and vindicates the decision to introduce the new VRT and motor tax systems”.
“If the environmental benefits of the change are to be truly maximized, a collective effort is required to educate the public on the practical implications of the change,” she added.
The ITI survey was conducted as part of Tax Week 2008. Further details are available at www.taxireland.ieand www.simi.ie