Just to start a good ould debate on budget morning, how would folk respond to VRT on engines greater than 2 liters being substantially increased for people living in Urban areas but no increase on VRT for the same car in Rural Areas….. the rational being to target carbon emissions released when cars are sitting in traffic…
From hearing Morning Ireland this morning it seems that moves are under foot to tax cars according to carbon emissions
Someone driving a high mileage because they live in a rural area easily produces more co2 in a modest 1.4litre that a 3.5 litre SUV driver doing the school run in a city.
The rural driver could easily be clocking up 20-25k a year in mileage
The urban driver 5 to 6k a year yet have to pay a higher vrt charge whilst producung less pollution.
It highlights the idiocy of the so called "Green" policies and their failure to do anything for the environment.
VRT is a rip off
Irish motorists are not just hit by one, but two taxes. Remember VAT is first charged on its import price, at 21%. It’s then that vehicle registration tax (VRT) is applied.
VRT isn’t a straight tax on cars, totally illegal under EU rules. Revenue bends the tax rules by making VRT a tax you pay to make your car legal to drive on Irish roads.
The rate of VRT paid depends on the car’s engine size, with cars up to 1400cc paying 22.5%, cars between 1401cc and 1900cc paying 25% and cars over 1900cc paying 30%. Obviously this is being adjusted to keep the rip off going in budget 2008
The nauseating thins is that VRT is not charged on the car’s pre-tax price but on its "open market selling price", ie the price the car is expected to make on the open market once all taxes and duties are added on. With this rip off you’re being taxed on tax already paid.
This double taxation means that a modest five-door Nissan Almera, which costs approximately €12,870 before tax, ends up costing €20,095 after tax is added on.
In Germany, the pre-tax price of an Almera is actually more expensive than in Ireland, at €13,224, but costs only €15,340 after tax.
I wish the EU would force the Gov to get in align its car taxes with other member nations.
The only valid "Green" tax would be on fuel consumption