The proposal would amend the definition of a ‘fuel efficient car’ for the purposes of the luxury car tax to include vehicles with a fuel consumption of no more than 4 litres per 100km (the current definition includes vehicles with a fuel consumption of no more than 7 litres per 100km).

The request also sought an assessment of the behavioural impact of the proposal on the sale of luxury cars.

The proposal would start 1 July 2023.