21/06/08

Vehicle labelling gives motorists’ choice – O’Gorman

Green Party Dublin 15 representative, Roderic O’Gorman, has welcomed the launch by the Minister for the Environment, John Gormley TD, of the new labelling system for cars, indicating their carbon emissions and the amount of Vehicle Registration Tax (VRT) and Motor Tax that must be paid on them.

“This new system means that motorists continue to have choice. Those that want to drive cars with really high carbon emissions still can, but they have to pay a tax rate that reflects the damage their choice does to the environment. However, those that make the choice to switch to cars with a more environmentally friendly engine will actually end up saving money”, stated Roderic O’Gorman.

“The new labelling system is similar to the one currently used for large electrical equipment like fridges and washing machines. Vehicles are divided into 7 bands, corresponding to the amount of carbon they emit. These bands are then used to calculate how much VRT or Motor Tax must be paid. For example, motor tax on a car in the most efficient A band will be approximately € 100 each year whereas motor tax rate on the least efficient G band will be € 2,000 per year”.

“Similarly, VRT for a car in the efficient A band will be 14% its open market selling price whereas the VRT for the less efficient G band cars will be 36% the open market selling price”.

“The personal choices each one of us makes in our lives all influence the amount of carbon we emit and as such, our contribution to climate change. By implementing this new system, the Government is showing that it will reward motorists who make the decision to be more green in their choice of car”, concluded Roderic O’Gorman.

Ends

Further Information
Roderic O’Gorman: 087 417 9777
rodericogorman@gmail.com

2 thoughts on “Press Release – Vehicle labelling gives motorists’ choice – O’Gorman

  1. Hi Roderic,

    I think this is a great move forward as it simplifies the information for consumers.

    Would the Green Party look at removing VRT on optional extra safety equipment ? Because of the current VRT regime, many manufacturers are reluctant to add on non-essential, but often lifesaving safety systems like ESP (Electronic Stability Program) which prevents skids. This leaves Irish drivers at a distinct disadvantage to our EU neighbours when it comes to road safety.

    Perhaps it could be looked at as a policy issue?

  2. Hi David

    Yeah, I think thats a valid point. I know that everytime a proposal is made to alter VAT for socially or environmentally beneficial purposes, there is usually an argument trotted out about breaching EU law, but as the recent reduction in the VAT on condoms has shown, this is not insurmountable.

    Roderic

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