All new cars registered from 1 July 2008 will have their motor tax rate and VRT rates based on the CO2 emissions level.

New cars registered 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, when the new CO2 based system commences. New cars which are registered in the first 6 months of 2008 whose tax would be higher under the new CO2 based system will continue to pay motor tax on the basis of engine size (cc).

From July 2008 there will be two separate tax systems for cars. Cars under the current motor tax system will continue to be taxed based on engine size (cc). New cars registered from 2008 will be taxed based on CO2 emissions level. New low CO2 emitting cars purchased in the first six months of 2008 will be switched to the CO2 system on first renewal of motor tax after July 1st 2008.

Details of the budget outcome on Road Tax and VRT are contained in the document below including the current schedule of Road Tax and VRT and the new proposed schedule (based on emissions) which will take effect from July 1, 2008.

You might be interested in finding out the emission level of your car. To do so, please follow this link:

Emission Levels of All Makes and Models

Comparison of the CURRENT v's NEW Tax & VRT rates: