The Business Lending Blog

Thinking of buying a commercial vehicle? Here’s some good news.

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If you’re thinking of buying a commercial vehicle in 2016, or indeed if you already have some on the road, then here’s some positive news.

As of January 1st Irish motor tax rates have been changed in favour of small business owners. In his 2015 budget, Minister for Finance Michael Noonan announced this decision which has now come into effect*. 

Where previously there were 20 different tax bands, there are now just 5. Not only does it make things far less complicated, but it will also save commercial vehicles owners money. Under the old system, charges ranged from €333 to an upper cost of €5,175. Now you can expect to pay between €92 and €900, a significant decrease.

For all electrical goods vehicles a flat fee of €92 is in place. Vehicles weighing up to 3,000 kgs are taxed at €333, whilst those up to 4,000 kgs will cost €420. A fee of €500 in is place for vehicles falling into the broad range between 4,000 kgs and 12,000 kgs. The upper limit for vehicles over 12,000 kgs is fixed at €900.

It is estimated that these changes will effect some 28,500 vehicles on Irish roads, at a cost €42 million to the Exchequer. This is just a temporary according to Minister Noonan. He said that a more comprehensive and fair system is being developed based on the “Good Design Vehicle Weight of the goods vehicles”. Tax rates for commercial vehicles had been criticised for being too high in comparison to the UK and Nothern Ireland.

If you’re thinking of getting a loan to finance your new commercial vehicle talk to Linked Finance today and find out how we’ve already helped lots of great Irish SMEs

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*This was first reported in the Irish Times, 2015

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