The alterations to BIK are designed to encourage employers to make their vehicle fleets less CO2 emitting.
But those who have to drive for a living are annoyed and concerned by the significant jump in tax they are seeing being taken from their salaries in this month's payslips. Vehicle leasing firms are reporting that some workers are seeking to hand back their company cars, or buy them out, so that they can use them as a private car and claim mileage instead.
Businesses are also worried that there may be consequences for costs, with the director of one Dublin company that has a fleet of cars and vans telling RTÉ News that he fears his staff will now seek pay rises to offset the extra cost of the tax. Under the changes, CO2 emissions along with the cash equivalent or original market value of the vehicle and the kilometres travelled for business are now the variables which are taken into account in the calculations, with vehicles producing higher emissions paying more than those that emit lower amounts of CO2.
However, under the changes the level of reduction is being tapered back gradually over the next three years, to €35,000 this year, €20,000 next year and €10,000 in 2025. "By making this change the Government is bringing the taxation system around company cars into step with other CO2-based motor taxes as well as the long-established CO2-based vehicle BIK regimes in other member states," it said.
It's a tax on working people who need to drive for a living. Nothing to do with being Green.Working people should remember who increased this tax come election time.