Carbon Dioxide (CO2) Motor Tax System for New Cars

From July 2008 there will be two separate motor tax systems for cars. Cars under the existing motor tax system will continue to be taxed based in engine size (c.c.). New cars registered from 1 July 2008 will be taxed based on their CO2 emissions level. New cars registered in the first six months of 2008 will be switched to the CO2 system on first renewal of motor tax after July 1st 2008, if the new CO2 tax rate is lower.

How will the level of CO2 be known?

Before a new model is put on sale in Europe, it must undergo a series of tests to ensure that it has achieved approved standards regarding safety, environmental impact, etc.  This process is called Type Approval and each car achieving the approved standards is issued with a Certificate of Conformity. Among the details included on the Certificate of Conformity is the level of CO2 emissions of the car.  This is the information that will be used for taxation purposes for both vehicle registration tax (VRT) and motor tax. This CO2 rating will be captured initially by the Revenue Commissioners at vehicle registration tax stage and passed on to the national vehicle file for use in connection with the administration of the motor tax system.  In the absence of a Certificate of Conformity and the Revenue Commissioners not otherwise being satisfied as to the CO2 rating of a car by reference to any other supporting documentation, the motorist will be required to pay the highest vehicle tax rate (VRT).  The same approach will apply to Motor Tax.

New Cars Registered in Ireland

A private car registered in Ireland before 2008 continues to be taxed under the system related to engine size (cc).

New cars registered in Ireland between 1 January 2008 and 30 June 2008 will initially have their motor tax charged on the basis of the existing engine size (c.c.) system.  However, a low CO2 emitting new car registered between 1 January 2008 and 30 June 2008 will have its motor tax switched to the lower CO2 based motor tax rate on first renewal of motor tax post 1 July 2008.  New cars which are registered in the first 6 months of 2008 whose tax would be more under the new CO2 based system will continue to pay motor tax on the basis of engine size (c.c.).

New cars registered after 1 July 2008 will be taxed on CO2 emissions

Cars Registered Outside of Ireland

A private car first registered abroad prior to 1 January 2008 will be taxed on engine size (c.c.). The CO2 based motor tax system does not apply to second-hand imports that were registered abroad prior to 2008.

A private car first registered abroad between 1 January 2008 and 30 June 2008 inclusive and subsequently registered in Ireland will be taxed on whichever is the lesser of the motor tax rates based on engine size (c.c.) or CO2 emissions.

A private car first registered abroad after 1 July 2008 and subsequently registered in Ireland will be taxed on CO2 emissions.
The aim of the new motor tax system is to encourage the use of smaller, cleaner, fuel-efficient cars in the fight against climate change by reducing the emission of carbon dioxide (CO2) from cars to help protect the environment and improve local air quality.
Cars registered before 1 January 2008 will continue to pay motor tax on the basis of engine size (c.c.). Also second-hand imports that were registered abroad prior to 2008 will be taxed on engine size (c.c.).

Cars registered before 2008 (i.e. cars in the current motor tax system before 2008) will continue to be taxed under the existing system related to engine size (cc).