Vehicle Registration Tax (VRT)
The following package of measures will be introduced:
- Extension of the Car Scrappage Scheme
- Extension of VRT relief for Hybrid Vehicles and Flexible Fuel Vehicles
- Increase in the VRT flat-rate for Commercial (Category C) vehicles
Car scrappage scheme is being extended for the period 1 January to 30 June 2011. VRT relief of up to €1,250 will be provided where a car of 10 years or older is scrapped in accordance with certain criteria and a new car of emissions bands A or B (i.e. with CO2 emissions of 140g/kg or less) is purchased.
The VRT relief for series production hybrid and flexible fuel vehicles, due to expire on 31 December 2010, is being extended for two years until 31 December 2012, with the rate of relief provided being up to €1,500.
The current VRT flat-rate of €50 for Commercial (Category C) vehicles is being increased to €200, to take effect from 1 May 2011.
Increase in Mineral Oil Tax on Petrol and Auto-diesel
The mineral oil tax will be increased by 4 cent per litre on petrol and 2 cent per litre on auto-diesel (both inclusive of VAT) with effect from midnight on 7 December 2010.