Motor Tax Cuts in Budget 2016

Motor Tax on cars and motorbikes was untouched in Budget 2016 – but there were some big reductions in the tax on commercial vehicles.
The motor tax is based on the weight of the vehicle  – and some larger lorries are currently charged as much as €5195 road tax a year.

The scheme has been simplified to just 4 levels of motor tax. The loss of revenue for the government is estimated at €45 million a year – but it is hoped it will encourage more haulage companies to base here rather then in Northern Ireland.
This is a summary of the commercial vehicle road tax amounts from 2016

Weight   kg                     2016 Tax
Under  3000               €333  (no change)
3001 to 4000              €420 (no change)
4001 to 12000            €500 (was €543 to €2490)
12001   plus               €900 (was up to €5195)


5 thoughts on “Motor Tax Cuts in Budget 2016

  1. What about all the cars from 1995 up to 2008 that are all on the old high road tax could they not look at reducing that a small bit too help people that are still using older cars as they cannot afford anything else, like a 1999 volkswagen passat 1.9 diesel is currently €690 for 12mts tax and a July 2008 passat 1.9 diesel is less than half that for 12 months tax it would help a lot of people less well off..!

  2. When the uk brought in emissions based tax they included all cars what ever their age.of course our
    Money grabbing gov’t only went back to 2008 so as to fleece the people who couldn’t afford to buy a new car.

    • Get your facts straight. The uk introduced emissions based taxation in 2001. Hence why all cars 2001 up are emissions based. Ireland didn’t do it til 2008 hence 2008 up is emission based.
      we do however get fleeced in comparison to bands. Lowest band in uk is free. Here is 180 euro. But we pay a bit less on fuel duty.
      in fairness most people should ve able to borrow enough to afford an 08 up car these days

  3. These new commercial rates are an increase for many large vans which are 3500kg and currently pay 333 euro but will pay 420 based on above. This applies to most courier vans. Typical government motoring policy written by people who take the Luas to work…..

    • Hi Alex – according to the motortax website the current tax for a 3500kg van is already €420. (Band is 3001 to 4000kg). Unless I’ve missed something?

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