A new environmental charge on all new and imported petrol and diesel cars is expected to introduced in next week’s budget, according to government sources.
The expected announcement of the charge related to nitrogen oxide and other pollutants is likely to come after both Taoiseach Leo Varadkar and Fianna Fáil leader confirmed that there will be climate change policies in next week’s budget.
Numerous sources involved in drafting the budget have earmarked a potential new environmental health surcharge for vehicles, stating such a new policy is being taken under serious consideration.
A potential new charge would replace the current one percent VRT surcharge on diesel vehicles.
It would operate on a “polluter pays” basis, which would signal higher charges for high emitting vehicles, particularly secondhand older cars.
The exact rate the charge would apply are not yet known, though options range from €5. €7.50 or €10 per mg/km of NOx.
Furthermore, a carbon tax increase of between €5 and €10 per tonne is also expected to be announced in the impending no-deal Brexit budget.