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    Budget 2020 & Motoring –

    As expected, the motoring industry and car buyers have taken a hard-hit after the announcement of Budget 2020.

    Fuel Costs

    Due to the Carbon Tax inflating to EUR6 a tonne, from midnight tonight (8th October 2019) fuel prices will rise. Petrol will be rising by 1.7 cents per litre, and diesel will be increasing by 2 cents per litre.

    That’s not all regarding Carbon Tax, as it was also stated it will increase from EUR20 today to EUR80 per tonne by 2030.

    Budget 2020 -

    Emmisions Charge

    There will be a new Nitrogen Oxide (NOx) emissions-based charge introduced. This will be replacing last years 1% diesel surcharge and will apply to all cars registered from the 1st of January 2020. The charge will apply on a euro (EUR) per milligram/kilometre basis, with the rate increasing in line with the level of nitrogen oxide emitted.

    Thinking of buying a new car or importing a second-hand one? You will have to calculate the car’s NOx emissions before committing.

    Imported cars that do not meet limits set in 2016 are likely to be the most affected.
    Under the new system, a car producing up to 60mg of NOx per kilometre will be taxed – on registration – at EUR5 per gramme per kilometre up to 60mg. From 61mg to 80, it will be taxed at EUR15 per mg and any figure over 81mg will be taxed at EUR25 per mg.

    • E.g. – A VW Golf built in 2013 and producing 118mg of NOx per kilometre will now attract a tax of EUR1,550.

    Budget 2020 -

    Plus Points

    For our forward thinking, EV enthusiasts, there were a few plus points.

    • An additional EUR3 million has been earmarked for “electric vehicle infrastructure”.
    • VRT benefits for hybrid and plug-in hybrids are being extended to next year (depending on CO2 thresholds).

    Stay up to date

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