Dáil Éireann Debate, Tuesday - 10 October 2023
53. Deputy Cormac Devlin asked the Minister for Transport if he will detail the policy rationale for charging different motor tax rates between private vehicles registered from 1 July 2008 and 31 December 2020 and vehicles registered after 1 January 2021, in circumstances where they have the same emissions; and if he will make a statement on the matter. [43472/23]
View answerMotor tax rates for private cars based on CO2 emissions were first introduced for cars registered from 2008 onwards. Cars registered prior to that date continue to be taxed based on engine capacity.
New vehicles registered up to and including 31 December 2020 pay both VRT and motor tax based on vehicle emissions measured using the system available at that time, known as the New European Driving Cycle (NEDC) system.
A new more stringent and more realistic system of measuring emissions has since been developed, known as the Worldwide Harmonised Light Vehicle Test Procedure (WLTP), which has been the mandatory measurement system for all new cars on the EU market in recent years.
New tax bands for both VRT and motor tax were introduced in Budget 2021 based on the new WLTP emissions for all new private cars registered from 1 January 2021 onwards.
The NEDC and WLTP emissions for the same vehicle are different figures. On average a vehicle's WLTP emissions are about 20% higher per KM than NEDC emissions , because WLTP is a more stringent system.
This is the reason why the pre- and post-2021 motor tax bands apply different motor tax rates for the emission figures under the two different measurement systems used.
