Hi Rsmike,
You might want to look at those calcs again. VRT is based on the open market selling price (OMSP). Effectively as far as I understand you effectively pay VRT on the VRT if you catch my drift.
Say OMSP was 40,000 and VRT was 30%. VRT is 12,000 rather than 28K by 30%.
surely thats against the EU laws for free movement of goods, are we the only country that charges the insane tax?
joejoe
Maybe people could post some real VRT examples here (CO2 figures available at , current new cars prices at www.carzone.ie)
Here is an example for the BMW 116i ( a fairly low CO2 emitting car for its engine size):
BMW 116i
Before July 2008
Pre Tax €19,967
VRT@25% €4,992
€24,959
VAT@21% €5,241
Purchase Price €30,200
After July 2008
BMW 116i (CO2 139g/km)
Pre Tax €19,967
VRT@16% € 3,195
€23,162
VAT@21% €4.864
Purchase Price €28,026
The fact that the VRT changes are not coming in until July 1 could cause some interesting anomalies in the car market, e.g. Would garages be tempted to stock up in the short term on gas guzzlers, Where as anything environment friendly will not shift until July 1, Maybe garages will start discounting the lower emitting cars, ;-)
Theoretically you could see a big price reduction, The 9-3 Biopower 1.8T is currently liable for 30% VRT.
When it run on E85 fuel its CO2 emissions can drop into the level for the lowest VRT band (14%), however thats only if its run on E85 biofuel, if its run on normal unleaded its CO2 figure is 178, which I'm sure is how they will classify it, then VRT will drop only to 28%, so not much difference, :-(
Thanks for that. I had a look at a copy of the budget and couldn't see how he would classify the biofuel cars. Currently there's a VRT rebate of 50% on these cars so is it possible that they will actually end up more expensive? It doesn't defeat the point of driving these cars but does take away the financial incentive.
reports yesterday said he was increasing the VRT rebate threshold on eco cars by 2500. Specific details on how the whole system is going to work will not be released for some time.
My guess is that we will adopt the banding scale used in the UK.
Maybe people could post some real VRT examples here (CO2 figures available at , current new cars prices at www.carzone.ie)
Here is an example for the BMW 116i ( a fairly low CO2 emitting car for its engine size):
BMW 116i
Before July 2008
Pre Tax €19,967
VRT@25% €4,992
€24,959
VAT@21% €5,241
Purchase Price €30,200
After July 2008
BMW 116i (CO2 139g/km)
Pre Tax €19,967
VRT@16% € 3,195
€23,162
VAT@21% €4.864
Purchase Price €28,026
The fact that the VRT changes are not coming in until July 1 could cause some interesting anomalies in the car market, e.g. Would garages be tempted to stock up in the short term on gas guzzlers, Where as anything environment friendly will not shift until July 1, Maybe garages will start discounting the lower emitting cars, ;-)
Thanks Soy. I don't think I'll be making a final decision until I see exactly how it pans out. I had a quick look at the UK website, but it doesn't look as if they give a reduction for a biofuel car as they seem to classify it based on the CO2 emmissions when it's run on petrol.
I'm also considering this car next year. Maxol garage 2 mins down the road and the car actually runs better on biofuel (usually the other way around for most biofuel cars). I can't believe they are basing the emissions on petrol. What kind of incentive is that! Clearly the governments idea of meeting our CO2 emission targets is to have everyone driving diesel. We may have less CO2 but we'll all be going around wearing masks and goggles!
"Vehicle Registration Tax is applied ad valorem which means it is applied on a value which includes the tax itself"
Agreed - I think that using the "green" argument for these changes is pure laughable. There doesn't look to be any encouragement for driving cars which can run on biofuel.
For example, an Audi A3 1.8T is now over 225g, so is liable for €2k pa road tax in the higher band!
same story with a Mazda RX8 (268g/Km)
Whereas, on the other hand:
a BMW 320d is now in the same band as a 1.2 Micra or 1.4 Ford, €290 pa.
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