|Alan Nolan, SIMI.|
It is in this context that the Industry is asking the Government to introduce a 'Swappage' incentive (€2,000 VRT refund on new car purchase of trading a six year old car or older) in this month's Budget. Such a scheme, he says, as with Scrappage, will have no cost to the State, and should deliver an extra €80 million in VRT and VAT in addition to supporting some 2,200 extra jobs right across the country. The additional jobs are worth an additional €50 million to the Exchequer.
In 2008, the Exchequer collected €2 billion in VRT and VAT from new car sales. This year, it will collect around €600 million. Swappage will help kick start a return to increased revenues as well as protecting and increasing the 36,800 jobs currently in the Motor Industry.