Car Dealers Want VRT Changes Deferred

30 Oct 2020 | 08.51 am

Car Dealers Want VRT Changes Deferred

Budget 2021 adds €1,000 to average car price

30 Oct 2020 | 08.51 am

Car dealers want the government to delay budget measures to increase Vehicle Registration Tax, saying the measures need a comprehensive analysis of their impact on carbon emissions.

The call comes from the Irish Car Carbon Reduction Alliance which says its “aim is to promote collaboration between industry, policy makers and motoring advocates in reaching the EU car carbon emission targets through a realistic and pragmatic approach”.

Spokesman Denis Murphy (pictured) said penalising motorists through tax hikes is not going to achieve the emission reductions that the government is seeking.

“With the second highest rate of car taxation in the EU and the second most expensive cars, new vehicles, which are more carbon efficient, were already taxed beyond the affordability of most Irish motorists. These latest proposed changes will add at least €1,000 to the average price of a car,” said Murphy. 

“Families needing a seven-seater vehicle can expect to pay at least €4,000 extra. Automatic cars, which are purchased by motorists with mobility issues, among others, are also particularly adversely affected. Even electric vehicles have not escaped, which flies in the face of the government’s stated intention to reduce carbon emissions.”

Murphy claimed that the measures will encourage people to hold onto their current car for longer. 

“The average new car sold next year will emit 28% less CO2 than the average car now on Irish roads, so for every car replaced in 2021 with a newer cleaner car, we can achieve significant emission reductions,” Murphy added.

Adding that Brexit in January will add to the problems faced by dealers, Murphy concluded that the government must take account of all these factors. 

“We urge them to take the time for an independent expert analysis of the impact of these VRT increases,” he said. “This would ensure that changes are made that will have a meaningful impact on reducing carbon emission levels while safeguarding the future of the retail motor sector.”

ICCRA believes that is will be impossible to achieve the government targets for electric vehicles and carbon reductions in the motoring sector by 2030 and instead suggests pushing the targets back by ten years to 2040.

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