In a statement following the Budget, he states: "For Ireland's top selling model, the Ford Focus, the VAT change will add about €450 to a new car. That is regrettable because in many cases, car owners have deferred renewing their cars over the last number of years, and I really get the sense that every euro counts for a lot of customers in that position." Having said that, he added, "I do think that, even with the VAT increase, there is still a lot of good value out there for customers looking for a new car in 2012.
"The road tax increase represents a significant row back on the C02-based taxation system that was introduced in 2008, as it hits hardest those car owners who opted for lower A and B band cars that produce the lowest C02 emissions. In so doing, the Minister is negating a lot of the environmental gains that the industry has made over the last number of years."
On a positive note, he said he is sure the industry will welcome the initiative on export tax relief which brings us into line with other EU countries.
