As expected, the motoring industry and car buyers have taken a hard-hit after the announcement of Budget 2020.
Due to the Carbon Tax inflating to €6 a tonne, from midnight tonight (8th October 2019) fuel prices will rise. Petrol will be rising by 1.7 cents per litre, and diesel will be increasing by 2 cents per litre.
That’s not all regarding Carbon Tax, as it was also stated it will increase from €20 today to €80 per tonne by 2030.
There will be a new Nitrogen Oxide (NOx) emissions-based charge introduced. This will be replacing last years 1% diesel surcharge and will apply to all cars registered from the 1st of January 2020. The charge will apply on a euro (€) per milligram/kilometre basis, with the rate increasing in line with the level of nitrogen oxide emitted.
Thinking of buying a new car or importing a second-hand one? You will have to calculate the car’s NOx emissions before committing.
Imported cars that do not meet limits set in 2016 are likely to be the most affected.
Under the new system, a car producing up to 60mg of NOx per kilometre will be taxed – on registration – at €5 per gramme per kilometre up to 60mg. From 61mg to 80, it will be taxed at €15 per mg and any figure over 81mg will be taxed at €25 per mg.
- E.g. – A VW Golf built in 2013 and producing 118mg of NOx per kilometre will now attract a tax of €1,550.
For our forward thinking, EV enthusiasts, there were a few plus points.
- An additional €3 million has been earmarked for “electric vehicle infrastructure”.
- VRT benefits for hybrid and plug-in hybrids are being extended to next year (depending on CO2 thresholds).