Expressing disappointment at an 'ill-considered move' announced in the Budget, SIMI Director General Alan Nolan said it shows the Government has 'a total lack of concern' for businesses in the sector, and that the move will encourage the importation of older 'dirty' diesel cars from the UK.
"From a revenue point of view, if even only 5,000 new cars are replaced by imports as a result of this VRT increase, the State would face a net reduction of €20m in tax receipts rather than the Department’s projected increase of €25m," he said.
He noted that the Budget decision on VRT 'flies in the face of' the stated support and consideration for those impacted by Brexit. "Our sector has been the worst impacted to date by Brexit and the 14pc fall in new car sales since Brexit is likely to accelerate further next year."
Another VRT-related increase in new car prices is also coming in January with the changes to the EU emissions test, which is expected to add €450 to a new car's price.
