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For new cars registered from 1st July 2008, motor tax charges will be determined on the basis of the CO2  emissions level, based on seven CO2 bands. Rates will range from €100 a year for the greenest cars to €2,000 for cars with the highest emissions rating.
New cars registered between 1 January 2008 and 30 June 2008 will initially have their motor tax charged on the basis of engine size. If it is beneficial for these cars to switch to the CO2 based motor tax system, this will happen on the first renewal of motor tax after 1 July 2008. New cars which are registered in the first 6 months of 2008 whose tax would be more under the CO2 based system will continue to pay motor tax on the basis of engine size.
The new CO2 based system will not apply to second-hand imports that were registered abroad prior to 2008.
The aim of the new motor tax system is to encourage the use of smaller, cleaner, fuel-efficient cars in the fight against climate change by reducing the emission of carbon dioxide (CO2) from cars to help protect the environment and improve local air quality.
Cars registered before 1 January 2008 will continue to pay motor tax on the basis of engine size.