Goodbye CC, hello C02. That's the message for everyone buying a new car from July 1 who wants the best value-for-money, greenest car. On that day the old regime ends.

The Fiat Grande Punto range will have lower road tax and VRT come July 1st according to Fiat in Ireland.

Road tax will no longer be based on an engine's cubic capacity (c.c.), but on how much carbon dioxide (C02) it emits. Emissions will also affect the rates of Vehicle Registration Tax charged. The less C02, the lower your annual road tax, and the lower the amount of Vehicle Registration Tax paid, and also the less harm caused to our planet.

From July 1 all new cars registered will be grouped in Emission Bands instead of by engine capacity. A car that emits up to 120 grams of C02 per kilometre (such as a Fiat Panda 1.2 or a Grande Punto 1.3 litre Multijet turbo diesel) will be in Band A.

Owners of these cars will pay just €100 road tax each year. The VRT rate on many cars of this size can also be at the lowest rate of 14%, so the price of cars in Band A may fall by as much as €1,250.

There will be seven Emission Bands:

Band A is for cars producing up to 120 g/km, annual road tax €100
Band B covers 121g to 140g, annual road tax €150
Band C covers 141g to 155g, annual road tax €290
Band D covers 156g to 170g, annual road tax €430
Band E covers 171g to 190g,annual road tax € 600
Band F covers 191g to 225g, annual road tax €1,000
Band G covers 226g and over, annual road tax €2,000!

Fiat Group Automobiles Ireland has welcomed these changes, because the new system will reduce C02 emissions and will reduce the cost of motoring for people who want to go 'green'.

The majority of cars Fiat sells fall into Bands A and b, the lowest cost bands. There are Fiat 500s, Pandas and Grande Punto in Band A, Bravos and Dobló 7-seaters is in Band B, and by the time the new laws take effect, there will also be a Bravo 1.6 in Band A.

Engine size will be less important in calculating your annual motoring costs that from now on it's all about what band you're in!

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