Ireland’s Vehicle Registration Tax regime for passenger cars (VRT Category A) 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.
The Deputy can find an explanation for how the tax is calculated at the following link:https://www.revenue.ie/en/importing-vehicles-duty-free-allowances/guide-to-vrt/calculating-vrt/index.aspx
In relation to a review of the VRT regime, the Deputy will be aware that there is a commitment contained in the Government's Climate Action Plan to recalibrate the VRT regime for passenger cars in light of recent progress on emissions standards. This means that the environmental rationale of the current VRT regime must be strengthened. My officials will be addressing this matter further in the context of the Tax Strategy Group.