The Budget

rabbitinlights

With the budget coming in the next few weeks what do people think will be the most likely things to happen to effect drivers or car buyers?

When they say "Carbon Tax" what exactly do you think they are going to do?

Will they hit Diesel or Petrol harder?

I'm looking to buy a ('02/'03) 520i M-Sport in the next couple of months and I'm holding off to see what happens before I drop any cash.

S.

.Longshanks.

Seth Brundle

Carbon tax might add up to 10c per litre of fuel - presumably across the board.
I doubt that we will see motor tax go up (all fingers crossed).

mickdw

I guess they will add the carbon tax to fuels so petrol & diesel will surely go up.
I wouldnt buy any car at the minute. best to see how it pans out.
If they reduce vrt, the arse will fall out of the whole thing IMO with peoples existing cars dropping even more money taking it to levels where even more people will owe more than the car is worth while cost to change will remain the same. This will make it harder to get finance. Also why would anyone move to buy if they reduce vrt as having seen what happened in 2008, it would be best to wait and let prices drop and settle etc.
On the other hand, if vrt was going to increase slightly, peoplpe would be running to get new cars at the cheap rate before the increase. This would make used car values stronger.
You are buyinig an 02/03 so this isnt going to bother you really but the petrol could be an issue. Wait until petrol goes up and you will get it cheaper possibly.

rabbitinlights

Yeah, it's tough to know what they are going to do. (Nice hair longshanks!!)

I'm currently renting a car for work as I need to hold out a little longer before I buy to see what happens.

Do you think fuel will go up by 10c?

S/

bf

Apparently petrol & diesel are both going up 5c a litre :mad:

mickdw

bf wrote: »

Apparently petrol & diesel are both going up 5c a litre :mad:

Any other insider info there;)

ShadowHearth

Longshanks100 wrote: »

LOL! Prety much what this fella said!

Heroditas

rabbitinlights wrote: »

When they say "Carbon Tax" what exactly do you think they are going to do?

Will they hit Diesel or Petrol harder?

I reckon 4-6c per litre of diesel and petrol

rabbitinlights wrote: »

I'm looking to buy a ('02/'03) 520i M-Sport in the next couple of months and I'm holding off to see what happens before I drop any cash.

If you're going to be serious about buying a car like that, you shouldn't be overly concerned about the price of petrol.
Petrol was under 95c per litre last Christmas. It's now €1.19
You'd have seen a far larger increase this year already

Tipsy Mac

Fuel 5 cent a litre, road tax 5% for majority and 9% for over 2 litre old system.

smash

Tipsy Mac wrote: »

Fuel 5 cent a litre, road tax 5% for majority and 9% for over 2 litre old system.

boll0x - they can't do that to motor tax!

Atomic Pineapple

steve06 wrote: »

boll0x - they can't do that to motor tax!

stupid greens :mad:

JHMEG

I saw somewhere the carbon tax will be 2.5c on petrol and 2.8c on diesel.

There will also be carbon tax on electricity, gas, kerosene, coal, etc.

Speculating now, but I can't see motor tax being left untouched. It's a soft target.

Seth Brundle

JHMEG wrote: »

I saw somewhere the carbon tax will be 2.5c on petrol and 2.8c on diesel.

There will also be carbon tax on electricity, gas, kerosene, coal, etc.

IIRC ESB and gas are exempt from it.

voxpop

if there is a carbon tax on electricity then Airtricity customers would have to be exempt or be liable to a reduced tax? Unless by carbon tax they just mean tax.

JHMEG

voxpop wrote: »

if there is a carbon tax on electricity then Airtricity customers would have to be exempt or be liable to a reduced tax? Unless by carbon tax they just mean tax.

You would think that it would be reduced, but it's not that simple. Also, the ESB is also a powerful lobby group, and would be better connected than Airtricity to unions and politicians.

Bonito

TBH i think they should rid of the tax disc and put higher tax on petrol and diesel.

To justify my dad has a 2 litre engine so he's paying what 618 a year or something?

But he'd RARELY take the car out, and i mean very very rarely, like he even had to change his battery a couple months back because his car just sits there.

This means he's driving less and filling up less meaning less emitions.

So if we only pay for the petrol we use it'd be fair, rather than charging the same tax rate for someone who might only do 1000-2000 miles in a year and someone doing an awful lot more can get away with paying the same amount of tax.

JHMEG

It's not about fair, it's about revenue. It's working perfectly in your Dad's case... he's paying lots of tax regardless.

Tipsy Mac

The floods around the country have been a wet dream for Gormley, he can peddle his climate change rubbish instead of the real cause rubbish planning allowing people to build on flood plains.

Dades

voxpop wrote: »

Unless by carbon tax they just mean tax.

I think they really mean carbon tax

smash

I think Gormley should be forcefully removed from office!

rebel.ranter

Heroditas wrote: »

I reckon 4-6c per litre of diesel and petrol

I'd say you're way off the mark there, more like 5c per litre

voxpop wrote: »

if there is a carbon tax on electricity then Airtricity customers would have to be exempt or be liable to a reduced tax? Unless by carbon tax they just mean tax.

Like I said to the harrassing Airtricity sales people that came to the door, "how do I know that the electricity coming to my house is Green electricity", whether I buy my electricity from Airtricity or not it is still coming from the same place. I'm just getting it billed by someone different. It's not like mobile phone networks where there are 4 separate (for now) networks. Airtricity is a pure billing exercise with a few windfarms feeding the grid, nothing more.

Bonito wrote: »

TBH i think they should rid of the tax disc and put higher tax on petrol and diesel.
So if we only pay for the petrol we use it'd be fair, rather than charging the same tax rate for someone who might only do 1000-2000 miles in a year and someone doing an awful lot more can get away with paying the same amount of tax.

Reasons why this will not happen:
1. Only the Greens care about emissions, "normal" politicans only care about tax take & popularity.
2. They are already making a killing on fuel tax & excise duty already.
3. Unions would block any change that would reduce the need for public servants (i.e. no more need for 26 motor tax offices & all their staff).
4. Road hauliers would be up in arms as they would suffer massive rises due to their fuel use. (A rebate system coudl be set up to offset this)
5. It makes common sense.

batperson

So very true! We will be reminded at budget time that the new carbon taxes will be worth it for our children if they are to avoid floods in the future!

Someone mentioned VRT going up, no chance of this unless only for big petrol engines in the top tax band.
The Bacon report has already suggested removing VRT over a 10 year period and I assume this will begin with this budget. (don't have the link right now but there have been a few posts about this).
Hopefully a 25% reduction in VRT and a few cents added to fuel.

Tipsy Mac wrote: »

The floods around the country have been a wet dream for Gormley, he can peddle his climate change rubbish instead of the real cause rubbish planning allowing people to build on flood plains.

Anan1

batperson wrote: »

The Bacon report has already suggested removing VRT over a 10 year period and I assume this will begin with this budget. (don't have the link right now but there have been a few posts about this).

Wasn't the Bacon report commissioned by the SIMI?

batperson

Anan1 wrote: »

Wasn't the Bacon report commissioned by the SIMI?

I understood it was an independent report whereby the Government commisioned Dr Peter Bacon. But if it was commisioned by SIMI then I'm very dissapointed and a little annoyed!

Anan1

According to this it was neither the Government nor the SIMI but a group of 20 car dealers! http://www.blackwatermotors.ie/UserFiles/File/Peter_Bacon_Report_SIMI.pdf

R.O.R

Anan1 wrote: »

Wasn't the Bacon report commissioned by the SIMI?

It might have been comissioned by 5 or 6 of Ireland's largest motor groups, all of whom are members of SIMI.

Or it might not have been, and it was all a dream, all a dream, all a dream......

voxpop

batperson wrote: »

I understood it was an independent report whereby the Government commisioned Dr Peter Bacon. But if it was commisioned by SIMI then I'm very dissapointed and a little annoyed!

Is it the McCarthy report your thinking of ?

rabbitinlights

Heroditas wrote: »

If you're going to be serious about buying a car like that, you shouldn't be overly concerned about the price of petrol.
Petrol was under 95c per litre last Christmas. It's now €1.19
You'd have seen a far larger increase this year already

Oh, I know all about the price difference in the last 12 months!!

I'm just concerned between the difference in Petrol vs Diesel in the Budget.

I want to drive a 6cyl Petrol over a diesel and I don't mind paying the difference in running costs as they are now but I'm concerned what the difference will be after the Budget, that's why I'm holding off buying at the moment. A 530d tractor could be on the cards....

batperson

voxpop wrote: »

Is it the McCarthy report your thinking of ?

No, Bacon report. Here is a link from the Irish Times

http://www.irishtimes.com/newspaper/motors/2009/1014/1224256601823.html

sparklepants

JHMEG wrote: »

You would think that it would be reduced, but it's not that simple. Also, the ESB is also a powerful lobby group, and would be better connected than Airtricity to unions and politicians.

Carbon tax won't be applied to electricity, regardless of who your supplier is. This has already been determined by the commission on taxation. It has nothing to do with lobby groups.

rabbitinlights wrote: »

I'm just concerned between the difference in Petrol vs Diesel in the Budget.

A floor CO2 price of €20 per tonne will add just under 5c to a litre of petrol and 5.5c to a litre of diesel. The size of the increase will depend on what CO2 price they use. The increase for diesel will always be around 10% more per litre than petrol, but as diesel has a higher calorific content the increase per km travelled will be less ....if you get me.

My crystal ball tells me that road tax will increase for all newer tax bands.

JHMEG

sparklepants wrote: »

It has nothing to do with lobby groups

The lobby group reference was to ESB vs Airtricity, not to carbon tax.

Top Dog

Bonito wrote: »

TBH i think they should rid of the tax disc and put higher tax on petrol and diesel.

I'd support that - and I say that as someone who's covered nearly 30k miles in the last 8 months.

wackjob

Just listened to the budget speech.

Initial reaction is that it was under clubbed on the spending cuts side, but enough as a stop gap measure to re assure the investors that lend the country money to pay the bills.

With Greece going off the reservation, think we will get brownie points for being good boys & girls and not squandering too much of Europe’s money.

Overly macro with little micro or hands on measures to drive employment. Can’t help but feel that a lack of appetite exists for any measure that requires elements of the civil service to roll up the sleeves and get involved in some detail projects to help create jobs.

The pay cuts are hard to take for the public sector, but without doubt won’t be the last.

Was really interested to hear what he had to say on the public pensions, a move away from linking the pension to pay scales of current employees? Thereby eliminating the automatic increases as wages increased. And linking it to the CPI, this sounds much fairer and less costly.

Of course existing pensioners that have benefited from the scheme, are now not been asked to take a reduction based on the pay cuts, that seems a little rich.

in general ok for the 1st budget of the year, € 10 says it will be a 2 budget year or change of goverment