SIMI disappointed with tax increases

The Society for the Irish Motor industry has expressed disappointment at the imposition of extra VRT and Road Tax in yesterday's road taxes. "We warned the Government that now is not the time, and it is certainly not the time to increase both," says Alan Nolan, Director General, SIMI (pictured left).

He says the motorist is already paying enough tax to be on the road and new car sales are down 10,000 on last year.

"We have always said that more tax would be generated from increasing the sale of cars rather than increasing taxation. The Budget VRT increases should deliver about €50 million, but this amount could be generated from the sale of just 6,000 extra cars and this would also support 800 extra jobs which would save the Government almost €20 million.

"Those buying a new car next year with a trade-in, the increase in VRT will have a knock-on effect on the value of the second hand, so the cost to change should not be significantly different."

Alan Lyons, President of SIMI has welcomed the introduction of the new registration period saying it is really good news for the Industry. Some 80 percent of new cars are sold in the first half of the year, forcing garages to reduce staff because of lack of business later on in the year.

SIMI say the retention of the VRT relief for electric cars, plug-in hybrids and flexi-fuel vehicles is also welcomed as is the reduction in Road Tax for Electric cars.