VRT Car labeling

In 2008, the Government introduced changes to Vehicle Registration Tax (VRT) and annual motor tax for new cars registered on or after 1st July 2008. Since then, both taxes are calculated on the basis of carbon dioxide (CO₂) emissions from vehicles rather than engine size. Seven emission/tax bands have been created in a new labelling regime, and VRT and motor tax payable is determined by the relevant band for each vehicle.

The reason for these changes was to incentivise consumers to purchase vehicles with lower CO₂ emissions, an important step in reducing national greenhouse gas emissions and in meeting Ireland ’s commitments under the Kyoto Protocol. Carbon dioxide (CO₂) is one of the principal greenhouse gases contributing to global warming and total national greenhouse gas emissions from transport increased by 156% between 1990 and 2009.

Click for the latest VRT and Motor Tax Rates.

Vehicle Registration Tax (VRT)

VRT is payable based on the open market selling price (OMSP) of each vehicle; further information on VRT and how it is calculated is available from the Revenue Commissioners or at www.revenue.ie.  

Changes to the Motor Tax Regime

Annual motor tax for all vehicles, irrespective of whether registered before or after 1st July 2008, is payable to the local authority in whose area a vehicle is registered. Further details on the motor tax charges for new cars can be assessed by clicking here.

Vehicles and CO2 emissions levels

The Society of the Irish Motor Industry (SIMI) provides details on CO₂ emissions for all new vehicles for sale in Ireland .

New labelling system

A key element of the whole initiative to rebalance the VRT and motor tax regimes on the basis of CO₂ emissions was the introduction of a new labelling system designed to reflect the seven emission/tax bands. Examples of new labels for a number of the seven bands can be viewed by clicking on the links below:

• Band A example

• Band B example

• Band E example

• Band G example

The new labelling system came into effect on 1st July 2008 to coincide with the introduction of the new CO₂-based tax structure for cars.

Vehicle labelling is not a new idea. A 1999 EU Directive introduced labelling for all new vehicles, including specific requirements to provide consumers with information on fuel economy and CO₂ emissions. 

The new national system strengthens these existing EU requirements. As well as providing additional information in relation to VRT payable and running costs, the label was designed to be more consumer-friendly. The seven colour-coded bands will be familiar to consumers from the energy label for certain electrical goods, such as fridges, washing machines, electric cookers and light bulbs. The overall approach was intended to assist buyers in evaluating the environmental impacts of different cars, as well as providing guidance for them on purchase and running costs.

Key elements of the new label

Starting from the top (click here for a large example), the first section of the label shows the seven emission bands and identifies the band for the particular vehicle to which a label is attached.  The band determines that car’s environmental impact in terms of CO₂ emissions and is intended to enable buyers to compare the impact of different cars and thereby make informed choices on environmental grounds. The band also determines the VRT and annual motor tax payable on a vehicle.

The second section of the label provides three important points of information for consumers:

• the rate of VRT payable on the vehicle,

• the annual motor tax payable, and

• the amount of fuel required to run the vehicle over 18,000 kilometres.

The ‘Environmental Information’ in the third section of the label supplements the information provided in the first and second sections, and introduces the importance of driving behaviour. One of the key messages for consumers is that information on the fuel efficiency and CO₂ emissions for all new cars is readily available to assist them in making informed choices.

The remaining sections of the label provide essential information on the actual vehicle to which it is attached, including make, model, engine capacity, transmission, fuel type and consumption.  Importantly, the penultimate section repeats the information in section one on the actual CO₂ emissions for the vehicle, highlighting the fact that this information can be obtained from the vehicle’s Certificate of Conformity, and pointing out that some specifications of the same make/model may have lower CO₂ emissions. 

Message for consumers

The new labelling system was introduced, with the cooperation and support of the Society of the Irish Motor Industry, for the benefit of consumers and the environment. Its sole purpose is to provide information to assist consumers in making informed choices. It is not intended to show or suggest a preference for any particular vehicle type or vehicle technology, and should not be interpreted in that way.