Motorists pay €752m in car sales' taxes in first three months of 2016
Motorists have already paid €752m in car sales’ taxes in the first three months of the year, a new quarterly report reveals.
That is a 31.4pc increase on the corresponding period for 2015 and comes on the back of a 28pc jump in new-car registrations, with commercial sales up 33.6pc.
And, according to economist Jim Power, author of the new SIMI/Done Deal report, government coffers are going to be rattling with even more motoring cash as he forecasts a total of €1.3bn in car sales’ taxes (VRT and VAT) for the whole year.
It could even run higher next year as Mr Power predicts “another good year (2017) should be in prospect for the auto industry”.
Regionally there has been a big increase in car sales in some areas with strongest growth in the first quarter recorded in Roscommon (45.1pc) while Longford was the lowest (17.7pc).
Mr Power also reports on mixed news for motorists with insurance costs reckoned to be up 32.4pc. But there is better news on other fronts with petrol prices down (11.1pc) and diesel 17.7 less expensive. He also calculates that the price of a new car has fallen by 2.8pc this year.
The report says: “The key drivers of new car sales look set to remain positive, with the current momentum of the Irish economy strong, employment set to increase, improved earnings and consumer confidence remaining positive.”
SIMI Director General Alan Nolan says: “The increase growth in sales is partly due to the pent-up demand from older cars been replaced with new ones over recent years.
“We would expect to see the industry continuing to improve towards more normal levels of sales with a projected €1.3bn likely to be collected for the Exchequer towards the end of 2016 for new-car sales.”
The buoyant market means more jobs and the report estimates the total number working in the industry now to be 40,600.