Will the Government alter our tax bands?
Hi guys,
I currently have a 2017 Audi Q5 190hp quattro auto S line, which would be due a change for Jan 2020. Road tax is €280 now, but I see from the full WLTP figures applicable from 1/9/2019 the tax will be €1,200, which is a crazy increase, and VRT will also get a huge hike. Do you know if the Government intend to widen the emissions bands to counteract this before 1/9/2019 or should I be looking at buying for 192? Opinions please.
Thanks
Pat
Pat Higgot (Dublin)Jan 2019 Filed under: taxation
Expert answer
Hi Pat,
Short answer is no, we don’t know. And nor does anyone, as yet. It seems more than likely that the Government will be making tweaks to the tax system this year, and SIMI (the Society of the Irish Motor Industry) has been lobbying for a movement of around ten per cent at the top end of each tax band. The EU has stated that the transition to WLTP has to be ‘revenue neutral’ so theoretically, something HAS to be done to mitigate any major increases in cost for consumers.
There’s always a but, though… The Government could theoretically say that leaving the system as is pushes people towards electric and hybrid models, and therefore is part of the overall environmental strategy, or they could decide that for the moment the tax system can continue to be based on the existing NEDC2 correlated figure.
We shall have to wait and see.
Neil Briscoe - Complete Car Advisor@neilmbriscoe