Proposed road tax changes and imported cars

Itsfixed

Hi

I wonder if this is the Government's way of cracking down on the number of imported cars from the UK? Seems a bit sneaky to me.

According to an Irish Times Motors article this morning about the proposed c02 emmissions based car tax, any used car imported after jan 2008 would have to pay the new Co2 rate, rather than the existing rate. But if you bought a similar used car here, car will continue to be taxed on the existing rate, ie without taking into account its Co2 emissions.

Any comments?

"When the new rates are introduced in January 2008, they will not be retrospective.

This means that a motorist who invests in a 5.0-litre V10 powered BMW in December 2007 will continue to pay the same €1,343 annual road tax, despite the car producing one of the highest CO2 emission levels of any car on the road at 357g of CO2 every km.

Buy the same BMW at the start of 2008 and it is certain that you will be paying substantially more not only for the car because of the changes to VRT but also every year in increased annual motor tax."

further on....

"There are also questions being asked about how Ireland's new CO2 rating system will work in practice. For example, a motorist importing a three-year-old car from Britain in 2008 will have to pay the new annual road tax rate (along with the new VRT rate). If the motorist bought a similar three-year-old car here, the car will still be judged for road tax without taking into account its CO2 emissions. Such tax regimes, favouring one's home market, is something the European Commission will take a keen interest in warns commentators."

Biro

I can't see how the Irish Government would want to have less imports coming into the country. They're milking it with them all, and probably loving it!
Think about it. You buy a corolla for example, brand new. You pay VRT on it (unknowingly). Lets say that costs €5,000. That goes to the Government along with the VAT. You sell that car in two years, the new buyer buys it, the Government gets nothing. However, if that person goes up to Belfast to buy their 2 year old corolla instead of getting it off you, then they need to pay VRT on bringing it in. Therefore the Government get that money (maybe €2500) that they never would have gotten had they not imported it.

Aside from all that, they haven't shown how they're going to tax on CO2 emissions. All that I've seen is a new bracket for cars of 2.4 litres and upwards. Thats so silly, taxing on cc's. Pure primitave.

Kimbot

The government make too much money out of VRT to try get rid of people importing!!