Written answers
Monday, 9 September 2024
Department of Finance
Vehicle Registration Tax
Matt Carthy (Cavan-Monaghan, Sinn Fein)
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340.To ask the Minister for Finance the current rates of VRT that are applied to cars being imported into the State; if he proposes to review the application of this tax; and if he will make a statement on the matter.[34551/24]
Jack Chambers (Dublin West, Fianna Fail)
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Under the Finance Act 1992, Vehicle Registration Tax (VRT) is assessed on a vehicle at the time of registration in the State and the way it is calculated depends on the category of the vehicle involved. The method of calculating VRT is the same regardless of whether the vehicle is new or has been imported second-hand from another EU Member State or a third country.
VRT on Category A vehicles (generally cars and minibuses) is based on the vehicle’s value and its emissions level, with higher charges for higher-emitting vehicles of the same value. This category typically accounts for more than 90 per cent of VRT receipts. There are two components of the VRT charge for these vehicles, relating to their carbon dioxide (CO2) and the nitrogen oxides (NOx) emissions.
The CO2 component of the VRT charge is calculated by multiplying the value of the vehicle (it’s “Open Market Selling Price”) by a percentage from a 20-band table, with the vehicle’s CO2 emissions level determining which band applies. Vehicles with the lowest CO2 emissions fall into band 1 (charged at 7%) while those with the highest emissions fall into band 20 (charged at 41%).
The following table sets out the basis for the calculation of the CO2 charge.
| CO2 Emissions (CO2 g/km) | Percentage payable of the value of the vehicle |
|---|---|
| CO2 Emissions (CO2 g/km) | Percentage payable of the value of the vehicle |
| 0g/km up to and including 50g/km | 7% or €140 whichever is the greater |
| More than 50g/km up to and including 80g/km | 9% or €180 whichever is the greater |
| More than 80g/km up to and including 85g/km | 9.75% or €195 whichever is the greater |
| More than 85g/km up to and including 90g/km | 10.5% or €210 whichever is the greater |
| More than 90g/km up to and including 95g/km | 11.25% or €225 whichever is the greater |
| More than 95g/km up to and including 100g/km | 12% or €240 whichever is the greater |
| More than 100g/km up to and including 105g/km | 12.75% or €255 whichever is the greater |
| More than 105g/km up to and including 110g/km | 13.5% or €270 whichever is the greater |
| More than 110g/km up to and including 115g/km | 15.25% or €305 whichever is the greater |
| More than 115g/km up to and including 120g/km | 16% or €320 whichever is the greater |
| More than 120g/km up to and including 125g/km | 16.75% or €335 whichever is the greater |
| More than 125g/km up to and including 130g/km | 17.5% or €350 whichever is the greater |
| More than 130g/km up to and including 135g/km | 19.25% or €385 whichever is the greater |
| More than 135g/km up to and including 140g/km | 20% or €400 whichever is the greater |
| More than 140g/km up to and including 145g/km | 21.5% or €430 whichever is the greater |
| More than 145g/km up to and including 150g/km | 25% or €500 whichever is the greater |
| More than 150g/km up to and including 155g/km | 27.5% or €550 whichever is the greater |
| More than 155g/km up to and including 170g/km | 30% or €600 whichever is the greater |
| More than 170g/km up to and including 190g/km | 35% or €700 whichever is the greater |
| More than 190g/km | 41% or €820 whichever is the greater |
The NOx component of the VRT charge is calculated using a progressive scale based on the vehicle’s NOx emissions level, as follows:
Calculation of NOx charge
| NOx emissions (NOx mg/km or mg/kWh) | Amount payable per mg/km or mg/kWh |
|---|---|
| NOx emissions (NOx mg/km or mg/kWh) | Amount payable per mg/km or mg/kWh |
| The first 0-40 mg/km or mg/kWh, as the case may be | €5 |
| The next 40 mg/km or mg/kWh or part thereof, as the case may be, up to 80 mg/km or mg/kWh, as the case may be | €15 |
| The remainder above 80 mg/km or mg/kWh, as the case may be | €25 |
As the Deputy will be aware, it is a longstanding practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.
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