1 June 2017

New environmental levy to push up cost of tyres

A new levy on tyres to have them disposed of in an environmentally friendly manner is to be imposed from 1 July, writes Padraic Deane.

It will apply to passenger and commercial vehicle tyres and to motorcycle tyres, and is expected to range from €1.85 (motorcycles) to €11 (trucks), plus VAT at 23pc.

Hundreds of thousands of ordinary motorists will see this as a new tax, that costs them €13.78 extra for four car tyres.

Tyre industry representatives were told on Tuesday that Minister Naughten wants the new Tyre Regulations to apply from July 1 2017. This date was seen as completely unreasonable and unworkable by the industry representatives present, who suggested a more realistic start date would be October 1 2017. This will ultimately be decided by the Minister.

The regulations will insist that the Visible Environmental Management Charge (vEMC) must be shown on all invoices, credit notes and delivery dockets issued by Producers to Retailers, and Retailers to Consumers, in a similar way that VAT appears on invoices. All retailers will have to register with and report to Repak ELT Ltd.

Retailers will have to report sales by category, car, van & 4x4 in a single category, with truck divided into two categories, light and heavy. Motorcycle tyres will be reported in a single category. Retailers will also have to report agricultural, industrial, and construction tyre sales with categories to be decided. However, it already seems unworkable with 25 categories listed in the draft regulations for a sector that only accounts for about 10 per cent of tyres sold.

The process will include naming the source of tyres (i.e. registered producer they are bought from). And then the name and registration number of who collects the waste tyres. And of course the quantity of tyres collected including agricultural, industrial, and construction units.

Retailers cannot purchase tyres from an unregistered producer. If they do, they will become the producer and will be liable for all vEMC payment collection and remittance for those tyres to the compliance scheme (Repak ELT) with additional reporting responsibilities as a producer to PR Ltd.