Drivers of new petrol and diesel SUVs could be hit with new “weight-based” vehicle registration and motor taxes in the next budget.
This year’s report on Climate Action and Tax examined the introduction of “weight-based” taxation, whereby heavier cars get a heavier tax. France introduced weight-based taxes for every petrol or diesel car that went over the permitted 1,800 kilogram allowance – at €10 for every additional kilogram.The TSG said the Irish vehicle registration tax and motor tax system “could theoretically adapt a similar surcharge for cars falling beyond a certain weight or size threshold”.
Over half of people who bought a new EV were able to benefit from tax relief last year. Full tax relief is only available on cars costing less than €40,000 however, the average price of a new EV is €51,377. Partial relief is available on cars costing between €40,000 and €50,000.