Ireland’s Vehicle Registration Tax regime is based on CO2 emissions in order to encourage the purchase of vehicles with lower CO2 emissions. This is in line with broader climate change policy as well as EU Regulations which set ever lower binding emissions targets on the automotive industry in relation to new car and van fleets. I understand that the introduction of the WLTP will more accurately reflect the CO2 emissions produced by motor vehicles and officials from my Department are currently examining options around the potential impact of the introduction of the WLTP on motorists, the motor industry, and the Exchequer.
More information about the options under consideration can be found in the Department’s Energy and Environmental Taxes TSG paper, published last month: https://www.finance.gov.ie/what-we-do/tax/the-tax-strategy-group/