6 January 2021

Ford Ireland calls for VAT reduction to end of March

Ford Ireland is requesting the Government to extend the current VAT reduction to the end of March, writes Trish Whelan.

Head of Ford Ireland, John Manning, says: “In this very tough environment, we need all the help we can get to boost vehicle sales and the continuation of the VAT reduction would be a great asset in this regard.” 

The standard rate of Irish VAT was temporarily reduced from 23pc to 21pc for a six-month period from 1 September 2020 to 28 February 2021.

Since 1987 when the year-based car registration system was introduced, January has consistently been the busiest month for new car sales in Ireland. Not so this year, as the latest Government Covid-19 restrictions will curtail the normal business activities of car dealers across the country for at least the first four weeks of January and perhaps for even longer into February.

John Manning supports the Government moves to curtain the spread of the virus. “It will be really tough on our business as new car sales will now be much lower than what they would be for a ‘normal’ January, we will be limited to providing new vehicles to customers within the guidelines of ‘click and collect’ services that both our dealers and other Dealer brands will be providing.”

These, he added are necessary steps and Ford fully support the restrictions as the number one priority is to protect people from the spread of the virus. “Everyone needs to get on board and obey the tier 5 restrictions as this is the only way that we can drive down new cases of the virus and keep our communities safe in the short term. The more people that fully comply, the sooner we will be able to see businesses opening up again.”

The New Ford Puma is pictured above.