Motor Tax Changes

[Big H]

It's no surprise that with the arse falling out of motor tax takings due to the advent of the 'low tax' cars of the past decade (and will get worse as Hybrids/Electrics get further traction), some inevitable changes are in the pipeline.

While nothing formal has been announced, how do people see this going ?

In the short term, it'll just be probably a slight tweaking of the existing Co2 bands, but will the pre '08 bands be ammended also (as someone with a 2.5 & a 3.0 pre Co2 based car, this could get nasty)......

Thoughts

[JohnH]

While nothing formal has been announced, how do people see this going ?

I think it’ll be quite simple.

There’ll be a big hullabaloo about how it’s good for us all but in the end the average Joe in a regular family car will end up paying more!

[rebel.ranter]

As long as they screw the 2008-2018 cars I'm OK with that!

Really, they need to do a reducing balance approach but I'd say their systems are not capable of managing such a system. It is not fair that someone who can afford a €100k plus Tesla gets the cheapest rate of tax while those struggling to own a 2007 ford Focus pays multiples of the Tesla tax.

[kdevitt]

As long as they screw the 2008-2018 cars I'm OK with that!

Really, they need to do a reducing balance approach but I'd say their systems are not capable of managing such a system. It is not fair that someone who can afford a €100k plus Tesla gets the cheapest rate of tax while those struggling to own a 2007 ford Focus pays multiples of the Tesla tax.

To be fair, someone buying a €100k car is already handing over a fair chunk of cash to the revenue commissioners in the form of VAT and VRT.

[Ketron]

As long as they screw the 2008-2018 cars I'm OK with that!

Really, they need to do a reducing balance approach but I'd say their systems are not capable of managing such a system. It is not fair that someone who can afford a €100k plus Tesla gets the cheapest rate of tax while those struggling to own a 2007 ford Focus pays multiples of the Tesla tax.

Fairest way would surely be a set percentage of the current OMSP? Revenue already OMSP have figures, so say something like 2% of OMSP revised yearly?

I'd say diesels will be slowly targeted under some environmental initiative.

[kdevitt]

I’m kind of a fan of the Australian system. Road tax is fixed amount, based off the weight of the car. Then each car sale has stamp duty charged on it - you have to pay it when registering the car in your own name. Not such a big fan of their luxury car tax though!

[Big H]

Personally, I'm a fan of taxing usage (and not the car itself). As said already, if you're paying €100k+ for a car, you're already handing over a big wedge in VRT & VAT.

The only realistic way of doing this is abolishing motortax (or at least vastly reduce the rates) and increase fuel taxes, so the more you use, the more you pay. It's the only fair system really (yes I know it would hammer rural people more than city dwellers). At least you would have the option of not using the car and it would encourage car sharing, bus, Luas, walking, cycling, whatever.
At least you can have a car for weekend duties without having to pay for its large periods of non-use.

Why should I have to pay totally unethical motortax rates on a 3 litre petrol that will only do 5k miles a year versus someone in a 1.6 diesel Passat (paying less than €200 pa) but doing 30,000 miles a year ? Morally & ethically wrong !

[doyleeoin]

Personally, I'm a fan of taxing usage (and not the car itself). As said already, if you're paying €100k+ for a car, you're already handing over a big wedge in VRT & VAT.

The only realistic way of doing this is abolishing motortax (or at least vastly reduce the rates) and increase fuel taxes, so the more you use, the more you pay. It's the only fair system really (yes I know it would hammer rural people more than city dwellers). At least you would have the option of not using the car and it would encourage car sharing, bus, Luas, walking, cycling, whatever.
At least you can have a car for weekend duties without having to pay for its large periods of non-use.

Why should I have to pay totally unethical motortax rates on a 3 litre petrol that will only do 5k miles a year versus someone in a 1.6 diesel Passat (paying less than €200 pa) but doing 30,000 miles a year ? Morally & ethically wrong !

This is the only way it should be done in my view. Remove the annual charge and tax the fuel.

[NickThePartsGuy]

id rather see a usage tax instead of what we have now
tax on the overall annual mileage (more miles you cover the lower you pay as you car is then looked at as a necessity)

with fuel as it is already it could price a lot of the bigger cars off the roads altogether if you go down the road of taxing fuel

priushaus just doesn't have the same ring to it

[SmokyMo]

First things first. Dump on diesels. There is no reason for their cheap tax given the whole 'better for environment thing' is nonsense.

Second. Get rid of flat fee tax system and introduce it at petrol station.

Third. Transparency on road tax expenditure. I am after coming back from a trip to the Ring. I couldnt believe how much nicer the roads are in Wales/England!!!
2/3 of 2016 road tax was wasted on Irish Water.. 2/3s!!!! Mental. Nobody blinked an eye.


Next time you walking through a street full of cars or car park, take a look at how many cars dont have 'full window'. People cant afford tax/nct/insurace. Things will get much worse for everyone next year.