VRT Information
From 1 July 2008 the relief for hybrid electric and flexible fuel cars, will be adjusted to give a relief of up to €2,500 on the VRT payable; this is in addition to the benefit of the new VRT CO2 emission related banding. With effect from 1 January 2008, electric cars and cycles will be exempted from VRT.
Further details on the VRT scheme are available from the Department of Finance.
Battery electric vehicles (BEVs)
Powered solely by electricity stored in large batteries within the vehicles. The battery powers an electric motor, or motors, which in turn drives the vehicle. The battery needs to be recharged by plugging into recharging points, for example, the mains electricity supply. With effect from 1 January 2008, electric cars will be exempt from VRT.
Hybrid Electric Vehicles.
A hybrid electric vehicle is a vehicle that derives its power from a combination of an electric motor and an internal combustion engine and is capable of being driven on electric propulsion alone for a material part of its normal driving cycle.
Flexible Fuel Vehicles
A flexible fuel vehicle is a vehicle that can achieve vehicle propulsion from an engine that is capable of using a blend of ethanol and petrol where such blend contains a minimum of 85% ethanol.
VRT Bands from 1st July 2008
The old VRT system used engine size as the criterion to determine the VRT rate to be applied to a car. Under the revised VRT system the CO2 emissions of a car will replace engine size as the criterion to determine the VRT rate payable on the car at point of registration. Lower emission cars will attract reduced VRT rates and higher emission cars will be liable to higher rates. The VRT rates will continue to be applied to the Open Market Selling Price of the car. The revised VRT system will take effect on 1 July 2008.
The following Table sets out the CO2 Emission Bands, the relevant VRT rates and Annual Motor Tax rates under the revised VRT system.
CO2 Emissions Bands | g CO2/km | VRT Rates | Annual Motor Tax Cost |
| A | 0 - 120g | 14% | €104 |
| B | 121 - 140g | 16% | €156 |
| C | 141 - 155g | 20% | €302 |
| D | 156 - 170g | 24% | €447 |
| E | 171 - 190 g | 28% | €630 |
| F | 191 - 225g | 32% | €1,050 |
| G | 226g and over | 36% | €2,100 |
| Non confirming or unidentified WRT Registration date | | | €2,100 |
| Electrically Propelled | | 0% | €146 |
By way of example, a new car with CO2 emissions of 165g/km will fall into band D, which determines – based on the current VRT and motor tax rates for that band – that VRT will be payable at 24% of the Open Market Selling Price (OMSP) of the vehicle and annual road tax will be €447. In terms of tax, a car with lower emissions, say 130g/km – band B, would be cheaper to buy due to the lower rate of VRT and cheaper to run due to the lower road tax.
Further information available from the Department of Finance or the Department of Environment.