According to ECO/SAPO, the Government has approved changes that will end the current system, where the tax is paid according to the month of the vehicle’s registration. Instead, the IUC will move to fixed payment dates, with a transitional year in 2027 before the final model comes into force in 2028.

During the transition year in 2027, drivers whose IUC bill is up to €500 will pay it in one go in October. Those with a bill above €500 will be able to spread the cost over two instalments, due in July and October, although they can still choose to pay the full amount in July.

From 2028, the permanent calendar will apply. IUC bills of up to €100 will be paid in April. Amounts between €100 and €500 will be split into two payments, in April and October. Higher bills, above €500, will be divided into three instalments, in April, July and October.

The Government says the change is only about the payment calendar and does not increase the amount of tax due. The aim is to make the system easier to remember and reduce missed payments, as many drivers currently forget to pay because the deadline depends on the month their vehicle was first registered.

According to the Government, late or missed IUC payments have led to millions of tax offences and enforcement procedures in recent years, with forgetfulness identified as one of the main reasons for non-compliance.

The new system is also designed to avoid drivers having to pay two IUC bills too close together during the transition from the old calendar to the new one.