Ireland to introduce CO2-based motor tax and mandatory labelling
Wed 12 July 2006
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Ireland is to introduce environmental labelling for vehicles on a mandatory basis and will also radically alter its Vehicle Registration Tax and Motor Tax to reflect vehicles' CO2 performance.
The decisions were announced in Ireland's latest Budget (December 6) and represents what the Irish Environment Ministry says is "one of the most progressive environmental measures to be introduced in recent years".
A system is proposed under which CO2 emission ratings for individual vehicles will, in addition to the normal engine cc value, be used for the calculation of motor tax.
Ireland's Environment Ministry says that the country has been able to reduce its overall emissions since 2001. Within this overall trend, however, emissions from the transport sector have continued to grow. Transport - of which road transport is overwhelmingly the largest part - is the third largest contributor to national greenhouse gas emissions, accounting for 18% of the total emissions in 2004.
The objective of the new tax signals is to provide an incentive for consumers to purchase cars that are more CO2 efficient. The initiatives will be supported by a mandatory vehicle labeling system to inform consumer choice.
The Irish Government is planning an extensive publicity campaign to precede the introduction of the new tax rates.
Related Links
Ireland - Environment Ministry press release
Ireland - Budget 2007 - Finance Ministry link
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