Tax move drives up sales of 'greener' diesel cars
Friday November 06 2009
IRISH motorists are choosing to go 'green', with sales of low-pollution cars almost doubling in just 18 months, a new report reveals.
Since last year's introduction of changes to the tax system that rewarded motorists who bought fuel-efficient cars, three out of every four new cars sold have been environmentally-friendly ones.
In July 2008, Environment Minister John Gormley changed the motor tax and Vehicle Registration Tax (VRT) rates, linking them directly to carbon dioxide emissions from the vehicle.
It meant that the more polluting the car, the more tax would be levied.
The move has helped spur a surge towards greener vehicles -- among the findings of the Energy in Transport report published yesterday, sales of such motors have jumped from 43pc of all car sales to 78pc in just 18 months.
There are seven motor tax bands -- Band A applies to cars which emit no more than 120g of carbon dioxide per kilometre travelled.
Band G applies to vehicles emitting more than 225g/km. Most new cars sold today are in bands A, B or C.
Sustainable Energy Ireland (SEI) said yesterday that the change in the tax regime had not resulted in people buying smaller-engined cars, instead there was a switch to diesel, which produces less CO2.
"The car tax changes have altered our car buying patterns, and we expect to see this holding firm when the sector recovers and purchasing grows," said the SEI's Dr Brian Motherway.
"The shift is significant. Higher fuel prices contributed, but clearly the tax had an effect. However, transport remains a significant sector for energy use and carbon emissions and needs a continuing focus.
"The VRT change is a great step, but it's not enough. The push to public transport needs to continue and carbon tax will also make a difference.
"This is about investment and future preparedness. We can't afford to keep importing fossil fuels -- it's time to start moving to a different direction."
Success
"This has enormously successful," Environment Minister John Gormley said. "People have now got into that mentality which is great."
Meanwhile Energy Minister Eamon Ryan said the switch to green cars not only attracted lower tax bills, but lower fuel bills too.
However, the promising sales figures for green vehicles come as thousands of jobs are being lost in the motors industry.
Earlier this week the Society of the Irish Motor Industry released figures for new cars registered so far this year which showed a 63pc fall in sales. By the end of October, 56,637 cars were sold, down from 150,790 in the same period of 2008.
- Paul Melia
Irish Independent
