Wednesday 25 April 2018

Motor industry calls for €2k VRT cut to help buyers

Eddie Cunningham

Eddie Cunningham

THE Government is being called on today to cut the price of a new car by €2,000 where the vehicle traded against it is six years or older.

The Society of the Irish Motor Industry (SIMI) wants a €2,000 reduction in Vehicle Registration Tax (VRT) to help buyers of older cars to buy new.

The SIMI says the €2,000 VRT rebate in such a ‘Swappage Scheme’ would help create 2,200 jobs because an 17,000 additional cars would be sold.

And the extra sales would generate €129m extra in taxes for the Exchequer, SIMI says in its Budget submission.

There would be an additional cut of 11,500 tonnes in emissions because newer cars are cleaner and greener.

If the Swappage Scheme was introduced for next year, SIMI forecast that up to 90,000 new cars would be bought, compared with a projected 70,000 for 2013.

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