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Motoring: Non-electric cars hit a speed bump


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A driver of a petrol car could pay about 12pc more to fill up his tank next year than he did in 2020, according to figures compiled by EY.

For example, the driver of a 1.4l petrol Toyota Corolla will pay €2,911 to fill up his tank over the next year – up from €2,597 a year under Budget 2020, assuming he drives 35,000km a year, EY found. This driver will therefore pay €314 more for petrol a year under Budget 2022 than he did under Budget 2020.

Many drivers will be paying hundreds of euro more to fill their tanks this year as a result of the carbon tax hike introduced in Budget 2022.

Furthermore, buyers of cars that are not environmentally friendly will be hit with Vehicle Registration Tax (VRT – the tax paid on new cars) increases of between 1pc and 4pc, with the biggest hikes faced by the most polluting cars. 

To incentivise the uptake of electric cars, the €5,000 relief for battery electric vehicles has been extended to the end of 2023. The benefit-in-kind exemption for electric vehicles will be also extended out to 2025 – with a tapering effect on the vehicle value, which will take effect from 2023.

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