Explain these motor tax rates for me...

Hi,

My question is this: Why is the motor tax on a 2019 five-seat Peugeot Rifter only €270 and the motor tax on a 141 Peugeot van is €514? I'm thinking it may have something to do with the CO₂ rating, but if so, why not the same for both vehicles?

Neil Dunne (Kinsale, Co. Cork.)

Mar 2025 Filed under: taxation

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Expert answer

Hi Neil,

For cars, the motor tax band is determined by the CO₂, as you said, but for vans it works differently. When a van is used purely for commercial reasons it's a flat rate of €333, but if the van is actually to be used for any private reasons, it has to be taxed as a private vehicle.

And for some bizarre reason, the rate it is then taxed at is determined not by its CO₂ rating, but by its engine size. Hence the weird situation you've described above where the Peugeot van's engine (1,501-1,600cc in size) means it costs €514 a year to tax for private use, while the CO₂ emissions of the Rifter (141-150g/km) mean it only costs €270 a year. 

Hopefully that explains what's happening anyway, weird as it seems. 

Shane O' Donoghue - Complete Car Advisor