The upcoming green budget might push New car’s cost

Indications says that the price of new cars will go up in Ireland in the wake of the green budget. The proposals are contained in the Tax Strategy Group Report.

The price of the new car will increase in line with VRT’s proposed overhaul in the upcoming budget. Reports says that the price of new cars is expected to increase by up to €1,000.

Indications are that buyers of new cars with average or above average emissions will have to pay more tax. The government hopes that this will lead people to go for greener vehicles.

The strategy group has adopted is that polluters should pay more. In the long run, there are indications that households may be subject to excise duty on electricity for the first time.

The new tax proposal is aimed at balancing the revenue to the state from motor fuel tariffs as people switch from diesel-petrol vehicles to electric vehicles.

The fact that the new tax is not recommended for a short period of time instead it marks a new shift in focus. At the same time, there will be a huge increase in rates for businesses that already pay excise duty on electricity.

Self-employed entrepreneurs will face four consecutive PRSI budget hikes. Their contribution to the Social Insurance Fund will increase from 4 to 11.05 per cent between 2021 and 2024.

As per the policies considered, there is a proposal to increase stamp-duty in October for luxury home buyers and cuckoo funds. The tax strategy group, chaired by the finance ministry, includes senior officials and political advisers.

The group prepares papers annually on various tax policy changes and helps formulate a menu of budget options.