Budget 2010 - Motors

macplaxton

Summary (subject to finding small print hid away somewhere) for motors

General VRT, no change
Motor tax, no change

Carbon tax: €15/tonne which translate to:

Petrol +4.2c from midnight. (VAT inclusive)
Diesel +4.9c/l from midnight. (VAT inclusive)

Scrappage Scheme
The Scrappage Scheme will run from 1 January 2010 to 31 December 2010. VRT relief of up to €1,500 will be available. The VRT relief will be provided where a new Category A car is purchased of emission Bands A or B (i.e. with CO2 emissions of 140g/km or less) and an old car is scrapped.

The car being scrapped:

• Must have been registered in the State in the name of the purchaser of the new car for at least 18 months previous to the date of scrappage,
• Must be 10 years old or more from the date of first registration,
• Must be scrapped after 9 December 2009,
• Must be scrapped within 60 days of the date of the new car being registered, or have been scrapped within the previous 60 days of the date of the new car being registered, provided the date of scrappage is after 9 December 2009,
• Must have a valid NCT certificate of roadworthiness, or one that has expired no more than 90 days prior to issue of the Certificate of Destruction; or documentation to indicate that it has been presented for and failed an NCT roadworthiness test in the previous 6 months;
• Must have been insured for use on the road for at least 12 months in the 18 months prior to the issue of the Certificate of Destruction.

Being ‘scrapped’ means that the old car has been taken to an official End of Life Vehicles (ELV) authorised treatment facility and a Certificate of Destruction is issued by the facility in respect of the car.

Further detailed information on the operation of the scheme will be posted on the Revenue website in the coming days.

*update* Revenue website: Scrappage Scheme FAQs

Electric/Hybrid VRT

The existing VRT exemption for series production electric vehicles and the VRT relief of up to €2,500 for series production plug-in hybrid electric vehicles (both of which are due to expire on 31 December 2010) are being extended for two years until 31 December 2012.

adamski8

macplaxton wrote: »

Scrappage Scheme
The Scrappage Scheme will run from 1 January 2010 to 31 December 2010. VRT relief of up to €1,500 will be available. The VRT relief will be provided where a new Category A car is purchased of emission Bands
A or B (i.e. with CO2 emissions of 140g/km or less) and an old car is scrapped.

Being ‘scrapped’ means that the old car has been taken to an official End of Life Vehicles (ELV) authorised treatment facility and a Certificate of Destruction is issued by the facility in respect of the car.

Is the an easy way to check which cars have emission bands A or B?
Is there a charge to get your car scrapped?

no1beemerfan

I'm not happy fuel has gone up again but tbh it could've been worse. Thank f€kc car tax didn't go up.

B11gt00e

Thanks for a very good summary there MacPlaxton. Was too busy to read or hear about the budget 'till now and its nice to get the distilled version on motoring matters.

Cheers.

kona

Do the above figures take into account the drop of .5% in VAT?

Dr Pepper

Thanks,

The scrappage scheme looks like a pure token gesture to me. There are so many limitations that it's as good as unusable. Are there people out there with pre-2000 cars who will decide to go out and buy (and can afford) a brand new eco-friendly car in the next 12 months? IMO, people who drive cars of 10+ years old (like me!) do so for a reason, either they can't afford a new(ish) car or they are just not bothered forking out a large proportion of their year's salary on a '2010' materialist badge!!

Seriously, who is going to take advantage of this scheme?

macplaxton

kona wrote: »

Do the above figures take into account the drop of .5% in VAT?

I think they do, they're from the Dept. of Finance

Bogger77

macplaxton wrote: »

I think they do, they're from the Dept. of Finance

VAT drop isn't til Jan though? This is from tonight.

andrew1977

I spend a lot of my weekly wage on petrol , i was dreading the announcement today on the carbon tax, but not as bad as i thought.

macplaxton

The VAT difference of 0.5% is hardly going to make a difference to the figure anyway.

The-Game

Not as disasterous as expected. no change on tax is a big relief.

Berty

Nothing frightening and nothing beneficial to the motorist or to the motoring industry.

macplaxton

adamski8 wrote: »

Is the an easy way to check which cars have emission bands A or B?

IRL emission band A = UK emissions band A, B & C.
IRL emission band B = UK emissions band D & E.

Search VCA data here

adamski8 wrote: »

Is there a charge to get your car scrapped?

No, see here for more detail.

Berty

But hey, drink is cheaper. We can all take enjoyment out of that.


*Shakes fist at teetotalers

Heroditas

Berty wrote: »

But hey, drink is cheaper. We can all take enjoyment out of that.


*Shakes fist at teetotalers

The decrease in booze will offset the increase in petrol.



*may depend on how much you drink and drive (not at the same time of course)

dellas1979

Dr. Pepper as I said in the other thread about car scrappage, I more than likely will be jumping on the bandwagon Im afraid and its not for a "Ive got a 2010 car - Ill rub it in your face".

Just like everything else, everyone is waiting for a bargain. I have been saving like mad for the last year for an opportunity like this. For me, it makes more sense than driving an old car thats on its last legs (honest am very attached to my car but I have to be realistic - last service cost me nearly €400, plus tax of 100 x 4 times a year, plus insurance). As I said in the other thread, watch people coming out of the woodwork on this one.

Am concerned though what they mean by "upto" 1500. In what way would it be 1000 for example - who decides or is it just bad terminology?

BanyaIreland

Will it still be cheaper to buy a 2009 with a few miles on it from Northern Ireland?

I think that's the REAL QUESTION!:D

jimmyw

macplaxton wrote: »

Summary (subject to finding small print hid away somewhere) for motors

General VRT, no change
Motor tax, no change

Carbon tax: €15/tonne which translate to:

Petrol +4.2c from midnight. (VAT inclusive)
Diesel +4.9c/l from midnight. (VAT inclusive)

Scrappage Scheme
The Scrappage Scheme will run from 1 January 2010 to 31 December 2010. VRT relief of up to €1,500 will be available. The VRT relief will be provided where a new Category A car is purchased of emission Bands
A or B (i.e. with CO2 emissions of 140g/km or less) and an old car is scrapped.


The car being scrapped:

• Must have been registered in the State in the name of the purchaser of the new car for at least 18 months previous to the date of scrappage,
• Must be 10 years old or more from the date of first registration,
• Must be scrapped after 9 December 2009,
• Must be scrapped within 60 days of the date of the new car being registered, or have been scrapped within the previous 60 days of the date of the new car being registered, provided the date of scrappage is after 9 December 2009,
  Must have a valid NCT certificate of roadworthiness, or one that has expired no more than 90 days prior to issue of the Certificate of Destruction; or documentation to indicate that it has been presented for and failed an NCT roadworthiness test in the previous 6 months;
• Must have been insured for use on the road for at least 12 months in the 18 months prior to the issue of the Certificate of Destruction.

Being ‘scrapped’ means that the old car has been taken to an official End of Life Vehicles (ELV) authorised treatment facility and a Certificate of Destruction is issued by the facility in respect of the car.

Further detailed information on the operation of the scheme will be posted on the Revenue website in the coming days.

*update* Revenue website: Scrappage Scheme FAQs

Electric/Hybrid VRT

The existing VRT exemption for series production electric vehicles and the VRT relief of up to €2,500 for series production plug-in hybrid electric vehicles (both of which are due to expire on 31 December 2010) are being extended for two years until 31 December 2012.

I cant understand if you are going to scrap a car, why would you need this. Surprised they didn't put up motor tax though.

JHMEG

macplaxton wrote: »

The VAT difference of 0.5% is hardly going to make a difference to the figure anyway.

About 0.6c, meaning unleaded up by 3.6c as opposed to 4.2c.

I think it was a waste of tax taking off the 0.5% again as what retailers are going to pass it on.

alias no.9

jimmyw wrote: »

I cant understand if you are going to scrap a car, why would you need this. Surprised they didn't put up motor tax though.

To stop someone dragging out some wreck that's been composting at the bottom of a garden since the last scrappage scheme to avail of the deal.

Berty

JHMEG wrote: »

About 0.6c, meaning unleaded up by 3.6c as opposed to 4.2c.

I think it was a waste of tax taking off the 0.5% again as what retailers are going to pass it on.

Any company which gives you a VAT receipt MUST reduce it because it will be blatantly obvious what the VAT is.

The same applies to OTC retailers.

My company will.

macplaxton

JHMEG wrote: »

About 0.6c, meaning unleaded up by 3.6c as opposed to 4.2c.

I think it was a waste of tax taking off the 0.5% again as what retailers are going to pass it on.

Not sure what you're working out there???

If 4.2c is including VAT @21.5%, then ex-VAT price will be 3.457 cents.
If 4.2c is including VAT @21% then ex-VAT price will be 3.471 cents.

The half of one percent difference is tiny.

It is a waste taking 0.5% off VAT, gives a quite a number of retailers a lot of work to do again.

JHMEG

macplaxton wrote: »

Not sure what you're working out there???

If 4.2c is including VAT @21.5%, then ex-VAT price will be 3.457 cents.
If 4.2c is including VAT @21% then ex-VAT price will be 3.471 cents.

The half of one percent difference is tiny.

It is a waste taking 0.5% off VAT, gives a quite a number of retailers a lot of work to do again.

VAT is on the whole price, not just the 4.2c.

ie of the 119c or so for a litre, approx 21.05c is VAT.

macplaxton

JHMEG wrote: »

VAT is on the whole price, not just the 4.2c.

ie of the 119c or so for a litre, approx 21.05c is VAT.

Yes it's added to the total, but the proportion of the increase (4.2c) has been stated as VAT inclusive.

€1.19 per litre of petrol inclusive of VAT @ 21.5%. Add on VAT inclusive carbon tax at 4.2c = €1.232.

Ex-VAT price of fuel is 97.942c/l + 3.457c/l Ex-VAT carbon tax = €1.01399 + 21.5% = €1.23199.

Ex-VAT rates of "carbon tax" are:

€34.38 per 1,000 litres for petrol
€39.98 per 1,000 litres for auto diesel

(Source: Revenue.ie Budget 2010 Summary PDF)

Mr Benevolent

I cant understand if you are going to scrap a car, why would you need this.

You don't. Read the conditions again.

NewApproach

Such hypocrites, they say that they, along with many other countries around the world want to reduce carbon emissions, yet they say that they want to take perfectly good cars and scrap them, to be replaced with brand new cars. There is no way that the extra pollution an older car produces can offset the massive amounts of pollution that is created through the entire production process of a new car.
And I see they are encouraging battery powered cars, by extending VRT relief. I wonder what Mr Gormless plans to do with the batteries of these cars when they are scrapped ten years from now?
The green party makes my blood boil. The most incompetent bunch of idiots ever assembled in this country

/rant

NewApproach

Question,

Am I right in thinking that the increase in fuel prices from tonight is charged at import, so in essence any retailer who puts up the prices at midnight tonight is keeping the extra until they get a new delivery of fuel from the wholesaler?

macplaxton

NewApproach wrote: »

Question,

Am I right in thinking that the increase in fuel prices from tonight is charged at import, so in essence any retailer who puts up the prices at midnight tonight is keeping the extra until they get a new delivery of fuel from the wholesaler?

This might answer it:

Revenue.ie wrote:

From 10th December additional carbon charges, of €34.38 per 1,000 litres and €39.98 per 1,000 litres, are added to the rates of mineral oil tax for petrol and auto diesel respectively.

Because, however, this element of the mineral oil tax charge is deferred to the 15th day of the month following that in which the liability arose, mineral oil tax will continue to be charged at the pre-Budget rates on petrol and auto-diesel on release from a tax warehouse and on importation into the State. The carbon charge element of the liability must be paid separately, by the 15th day of the following month, on the basis of a return.

Revenue staff and the traders concerned will be advised in good time of the arrangements for these returns and payments.

From that, I'd say yes. The tax point occurs when released from "tax warehouse" at which point it officially enters the State.

aster99

quick question...does the new scrappage scheme only apply to brand new cars in 2010?

or would it apply as well to a 09 car which falls into a particular tax band?

Tragedy

Shocked they went this route.

No way will this garner them as much money as blanket motor tax increases, and I think the latter would have been taken better by people(as we're fairly fecking used to it)

Bandara

NewApproach wrote: »

Question,

Am I right in thinking that the increase in fuel prices from tonight is charged at import, so in essence any retailer who puts up the prices at midnight tonight is keeping the extra until they get a new delivery of fuel from the wholesaler?

Yes you are correct.

I personally do not do it, but I can easily understand the reasons some station owners have for doing it. The way business is the past 2 years and how badly some sites are struggling to stay open, not taking an oppoortunity to actually make some margin is too hard to ignore sometimes.

We are talking about a lot of money in some cases.

macplaxton

aster99 wrote: »

quick question...does the new scrappage scheme only apply to brand new cars in 2010?

or would it apply as well to a 09 car which falls into a particular tax band?

Re-read the original post.

macplaxton wrote: »

The VRT relief will be provided where a new Category A car is purchased of emission Bands A or B (i.e. with CO2 emissions of 140g/km or less) and an old car is scrapped.

Quick answer NO.

air

Does the "Category A" bit just refer to normal passenger cars as opposed to commercials or anything else?

macplaxton

air wrote: »

Does the "Category A" bit just refer to normal passenger cars as opposed to commercials or anything else?

Yes.

"Examples of Category A vehicles include cars (saloons, estates, hatchbacks, convertibles, coupes, MPVs, Jeeps etc.) and minibuses with less than 12 permanently fitted seats (11 passenger seats plus the driver's seat)."

More about it here

air

Cheers, thought that was it alright.