Posts Tagged ‘Ireland’

Romanian Car Caveat Starts Filling

December 4, 2008

While imports (particularly used car trading) seems to be stagnating in most parts of the world because of economic turn down, there are still many nations still empty of affordable cars. Romania is one such place. According to Financiarul.ro:

In the first ten months this year, the number of used cars from import rose 105%, to more than 205,000 units…

As you can see, the eastern European nation is starving for affordable vehicles and while brand-new models remains prohibitively high, used car imports are filling all the holes in the social landscape. While nearly all of these cars are coming from Western Europe, there may be room for Japanese exporters to find sales direct or indirectly from this situation. While it may not be affordable to export cars to Romania (worth finding out for those looking to expand), we can expect the need of replacement cars in those nations that are selling to Romania. Maybe we’ll see increased imports for Ireland/UK/Netherlands as a knock-on effect.

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New VRT Rates Start 1 July 2008 for Ireland

June 20, 2008

From 1 July 2008 in Ireland, Category “A” cars will be taxed based on the level of CO2 emissions and not engine size as before. Also, the 50% discount of VRT payable for hybrid electric and flexible fuel vehicles is replaced by VRT relief of up to €2,500 depending on the car’s age (for hybrids only). This will only apply to car registered after 30 June, while cars imported before will continue under the old system.

According to The Irish Revenue Commissioner’s Leaflet:

New Tax Regime

From 1 July 2008, VRT payable on category A vehicles will no longer be based on the engine size but rather on the level of CO2 emissions from the car. Linking the VRT rates to the level CO2 emissions will mean that individuals purchasing cleaner, low emission cars will pay less VRT while those opting to purchase higher emitting vehicles will pay more.

A seven-band CO2 emission system will apply. VRT will now be charged as a percentage of the OMSP (Open Market Selling Price) in accordance with the following table:

CO2 Emissions (CO2g/km) VRT Rates
0 – 120g 14% of OMSP
More than 120g/km up to and including140g/km 16% of OMSP
More than 140g/km up to and including 155g/km 20% of OMSP
More than 155g/km up to and including 170g/km 24% of OMSP
More than 170g/km up to and including 190g/km 28% of OMSP
More than 190g/km up to and including 225g/km 32% of OMSP
More than 225g/km 36% of OMSP

Importers of Japanese used cars must have the CO2 Emissions levels declared on their Export or Deregistration Certificate, or have a printout emissions certificate for your particular model from the Japanese Ministry of Land, Infrastructure and Transport. If you don’t have proof, you will be charged the highest rate (36%) regardless of how efficient the car is.

Also, as an incentive to by eco-friendly cars, you can get reductions based the car age for hybrids. That is, the younger the car is, more money is deducted. Of course there is a minimum amount that still must be paid, but here are the discount rates:

Hybrid, flexible fuel and electric vehicles

The current relief of 50% reduction of the VRT payable on Hybrid and Flexi Fuel vehicles is withdrawn from 30 June 2008.

A VRT remission up to a maximum of €2,500 will be available on such cars registered between 1 July 2008 and 31 December 2010.

This relief is limited, on a sliding scale, depending on the age of the vehicle. The scale is as follows:

Age of vehicle Maximum amount which may
be remitted or repaid
New vehicle, first registration €2,500
Not a new vehicle but less than 2 years €2,250
2 years or over but less than 3 years €2,000
3 years or over but less than 4 years €1,750
4 years or over but less than 5 years €1,500
5 years or over but less than 6 years €1,250
6 years or over but less than 7 years €1,000
7 years or over but less than 8 years €750
8 years or over but less than 9 years €500
9 years or over but less than 10 years €250
10 years or over Nil

With effect from 1 January 2008 to 31 December 2010, series production electric vehicles and electric motorcycles are exempt from VRT.

Note: There is no change for Category B (crew cabs, etc.), Category C (commercial vehicles) or Category M (motorcycles – other than electric motorcycles).

-Source: Change to the Tax Base

Tighter Laws in Ireland for High-Emission Vehicles

December 7, 2007

Motor tax for cars with high emissions is to increase dramatically under new measures announced in a carbon budget by Minister for the Environment John Gormley.

Cars with the lowest emissions will be charged only €100, however, the cars in the top band will be obliged to fork out €2,000.

The measures for new cars will come into force from July.

More at http://www.rte.ie/news/2007/1206/budget.html

Additionally, VRT, or Vehicle Registration Tax, will be based also on Emission levels. Government’s proposed laws should, by linking the money in people’s pockets with emissions, reduce levels. According to the Government, car owners could benefit in reduced VRT rates if they choose greener cars.

More at http://www.rte.ie/news/features/budget2008/issues/airroadrail.html