MOTORISTS WHO have bought low CO2 emission cars from January 1st this year will be able to qualify for reduced motor taxes, under plans to be confirmed in the coming days by Minister for the Environment, John Gormley.
In the Budget, the Government proposed a new motor tax system to come into force from June 1st, where lower emission cars would pay less road tax than their high carbon dioxide-emitting counterparts.
The move had been criticised repeatedly by the motor industry, and the Automobile Association, as well as by a number of TDs during a Dáil debate yesterday on the legislation to implement the changes, because it apparently would not benefit people who had tried to be "green" already. However, it is understood Mr Gormley will respond to such criticism by introducing amendments at committee stage.
Under one such amendment, post-January 1st car purchasers will be able to "opt in" for the new lower motor taxes, but they are unlikely to be able to get a refund on any taxes already paid.
Hinting that a change was imminent, Mr Gormley told the Dáil: "I have already examined many of the issues raised... I believe there is some scope to bring forward amendments on committee stage to address some of the concerns expressed." The changes will save new owners of the Lexus GS450h petrol-electric hybrid - a car popular with some Government Ministers - €891 a year, while those who bought Toyota's Prius since January 1st will see their motor tax fall from €428 to €100.
Similarly, the motor tax due on the Fiat Grande Punto 1.2, which currently stands at €275, will drop to €100, while motorists who bought a Skoda Octavia 1.9-litre TDI will pay just €150 a year, rather than €560 as at present. Those driving a 2008 Ford Fiesta 1.3 will pay €290 a year when they next renew their tax, and 2008 Renault Clio 1.3 owners will pay €150 rather than the €298 tariff currently imposed by the Department of the Environment.
The compromise formula to be announced by Mr Gormley will also ensure that lower-emission cars imported from the United Kingdom will be able to qualify for lower motor taxes, as long as they were sold after January 1st.