The Society of the Irish Motor Industry (SIMI) has produced a simple question and answer booklet on the implications of the changes in the VRT and Road Tax rates. This provides some additional information for car buyers in order that you can make an informed decision in good time.

Q: I have a used car, will my Road Tax change?

A: No, the current tax rates will remain the same as they are based on the old system.

Q: I purchased a new car in January of this year, how will the new Road Tax system affect me?

A: If the new CO2 based road tax rates are going to be lower after July, you can Road Tax your car for a short period (3/6 months) and renew after July. However, if the Road Tax is going to increase after July on the model of new car that you have bought, you will be able to stay at the current Road Tax rates.

If you buy now, you can still benefit from any reduction in road tax that will take effect in July, on the first renewal of your road tax. If you are thinking of buying a model where the road tax will increase in July, you would be better buying now as it will remain on the lower current road tax system for the future. It is important to remember that a new car registered after July will be subject to the new road tax scheme. Vehicles registered before July can be taxed at pre July rates or post July rates.

Q: How do I know if the new car I bought this year is going to have an increase or a decrease in Road Tax after July?

A: Firstly, it won't increase whether or not it will decrease will depend on the CO2 emission band that your car fits into. Your car dealers of log on to www.simi.ie and click the link 'SIMI CO2 Guide' on the right hand side to see what CO2 output is applicable to your vehicle.

Q: I am thinking of buying a used car before July, will the Road Tax changes affect me after July?

A: No, the current rates will still apply unless the car was first registered after January 2008.

Q: I am thinking of buying an imported used car after July, how will the new Road Tax system affect me?

A: Imported cars first registered in previous country before the 1st January 2008 will be Road Taxed at current rates (cc based). Used vehicles first registered in previous country after 1st July 2008 will be based on the CO2 Road Tax rates while those registered in other member states between the 1st January and 1st July 2008 will be taxed on whichever rate is lower.