Looks like the leaked budget will be restructuring the motor taxation system

mullingar

Following on from the leaked budget, from the Irish Times:

http://www.irishtimes.com/newspaper/frontpage/2011/1118/1224307767242.html?via=mr

.....restructure motor taxation.....

Not a lot of infor there, but my money is on a flat % increase on all CO2 based emission rates........

Mena

From 2013.

However, all this assumes that this "leaked" document is not simply there to soften us up for December... 2% VAT hike mentioned, so when they increase it by 1.5% we're all happy out!

Henry Ford III

mullingar wrote: »

Following on from the leaked budget, from the Irish Times:

http://www.irishtimes.com/newspaper/frontpage/2011/1118/1224307767242.html?via=mr



Not a lot of infor there, but my money is on a flat % increase on all CO2 based emission rates........

Mine is on a flat rate increase on all existing rates.

vetstu

It says restructuring, to me that indicates that it will be more than the usual increase. Probably hit the big cars that are only 150 or so to tax, or even up pre and post 08 rates.

subway

my guess is bands to be widened, ie even more stringent emissions restrictions to get the lowest rate. potentially (depending on revenue estimations) older cars to be brought into the emissions based system. rates potentially to stay the same as revenue increase will be made by pushing people into higher brackets, all in the name of being even more green.

however i have it on good authority that V8s will be tax emempt from 2012 onwards

E39MSport

Does that mean that V12 owners will be owed money ?

subway

Enda didn't explicitly say it, but that's certainly what I understood.

mullingar

I found this:

http://www.budget.gov.ie/The%20National%20Recovery%20Plan%202011-2014.pdf

I dont know if its the so called leaked document or not (probably not as its on the .gov.ie domain) , but it includes the 2% VAT increase, the €100 household charge and the increase excise duty that's big in the news today, so maybe it has some merit to the motor tax plans....

The Government revised the vehicle registration tax and motor tax systems on cars to be based on
the CO2 emissions of the vehicle, rather than on engine size, with effect from 1 July 2008. This
change has been highly successful in encouraging people to purchase lower emissions cars. However,
the change in purchasing patterns, combined with other factors, is having an impact on revenue
yields, especially in the case of motor tax over the medium term.

During the Plan the current CO2 bands and rates structures will be examined in the light of the overall
reductions in CO2 emission levels being made by car manufacturers and the standards set
internationally with a view to adjusting the bands in line with technological advances on 1 January
2013.

FGR

Like above I reckon they'll bump every Co2 limit up one category and introduce a new sub 90 limit that will qualify for €104 tax.

That or they'll bring back the old system and instantly hit all those who've bought 2 litre Diesel 5 Series

IsaacWunder

It would be nice to know what they have planned, extending emissions based rates to pre 07' cars would see my tax fall. Either way I'm sure I'll end up paying more.

Gael23

Would there be any legal implications of merging the 2 systems? this wold obviously lead to vast increases in rates for many people who bought cars under the premise of low tax.
Im wondering will they end the co2 system and go back to the old system based on engine size.

johnos1984

I won't be worrying for another 12 months as I taxed the car yesterday

No legal implications whatsoever.

Dilbert75

Or abolish road tax and put 30c on every litre? That would be restructuring...

challengemaster

ryanf1 wrote: »

Would there be any legal implications of merging the 2 systems? this wold obviously lead to vast increases in rates for many people who bought cars under the premise of low tax.

You bought a house, they're bringing in a property tax - same thing. Buying something because it's currently on a low tax rate is somewhat stupid, thinking it'll be forever more on that rate however.... :rolleyes:

coolbeans

johnos1984 wrote: »

I won't be worrying for another 12 months as I taxed the car yesterday

I did the same thing paying for twelve months for my Mazda yesterday. If you can't beat 'em kick the can down the road.

Gate Automation

Dilbert75 wrote: »

Or abolish road tax and put 30c on every litre? That would be restructuring...

the best way, you drive lot, you pay more, you drive less, you pay much much less

Voodoomelon

ryanf1 wrote: »

this wold obviously lead to vast increases in rates for many people who bought cars under the premise of low tax.

"Hey, I only bought this car because it had low tax! You can't increase it now!"

"Why not?"

"Because I paid thousands on my new car, to save hundreds every year!"

*Muffled laughs*

johnos1984

coolbeans wrote: »

I did the same thing paying for twelve months for my Mazda yesterday. If you can't beat 'em kick the can down the road.

I'll even join the queue at the petrol stations on budget night.

When is it by the way so I can have the tank empty

Fishtits

The '08 on CO based tax was never sustainable, it resulted in a total collapse in revenue for the local authorities. It was always going to be trouble...

The current rates could be doubled without much uproar, your average 2.0 diesel would then cost 300 odd vs the 600 under the old cc based scheme.

Increased rates = more revenue to local authorities = less Govmt grants to same = cost cut = happy troika.

Job done.

MSG To Govmt...

Don't on fear of a long painful death, dare to even consider raising pre '08 rates, they are punitive as they are.

screamer

The only thing that surprises me here, is that they didn't do this before! Was fine when new car sales were flying high, now, it's killing VAT takes, cause no one is buying..... I've a 06 diesel car, same engine as it's 08 model, and I pay almost 600 euro in tax per year, the 08 car owner, pays 156 I think. Same engine, same emmissions, and well over 400 euro difference per year....... TBH, I knew this would happen, that's why I didn't bother to trade in the car.

Fishtits

Fishtits wrote: »

.................
MSG To Govmt...

Don't on fear of a long painful death, dare to even consider raising pre '08 rates, they are punitive as they are.

< 2000cc will be +€50 and >2000cc will be +€100 I reckon, was in the public domain some time back.

Del2005

johnos1984 wrote: »

I'll even join the queue at the petrol stations on budget night.

When is it by the way so I can have the tank empty

6 Dec, why? You'll end up buying at the higher rate in a week or so anyway and then you'll have the conspiracy theorist saying the put the price up early anyway. Fill up now instead:D

dr.fuzzenstein

Henry Ford III wrote: »

Mine is on a flat rate increase on all existing rates.

I'm willing to bet you are right, million bucks and my left nut.
Because it is the easiest, laziest, fastest and most half assed solution out there that requires the least deal of thought and energy, simply take existing forms, scribble out some figures and write new ones in.
That's what the Irish government likes doing, God Help Us if they actually had to sit down and think about something and then find an intelligent and efficient way of doing things, not when you can just hike some tax rates, regardless of who ends up on the street.

Yawlboy

A dutch friend of mine was saying that road tax on a big 4x4 like a discovery 4 in Holland was approx €4k a year :mad::mad:

Apparently it is based on CO2 emissions and the weight of the vehicle. A new Disco 4 here costs €2100 a year to tax currently so if we were to adopt the dutch system their is a long way still for them to increase our road tax. :(:(

Our man in Havana

Voodoomelon wrote: »

"Hey, I only bought this car because it had low tax! You can't increase it now!"

"Why not?"

"Because I paid thousands on my new car, to save hundreds every year!"

*Muffled laughs*

I will join the laughter at the celtic tiger buyers with their new cars.

Voodoomelon

I have no grudge against anyone who buys a new car. What is ridiculous though is buying a new car based primarily based on motor tax.