EU pre-tax car prices equalising, study shows
A new study has found variations in pre-tax car prices throughout the European Union are beginning to diminish, it was reported today.
The study said the latest EU study on car prices had found the gap between the most and least expensive states had decreased from 6.9% to 6.3% in the past six months.
However, in the 12 countries that use the euro, the gap remained static over the past six months at 4.4%.
Ireland has one of the lowest pre-tax prices in the EU, but when Vehicle Registration Tax and VAT are taken into account, Ireland becomes one of the most expensive EU states.
Pre-tax prices vary throughout the EU because manufacturers take taxes into account when setting their wholesale prices.
The European Commission wants this practice to be phased out, a move that could lead to higher car prices in Ireland if VRT and VAT rates are not reduced accordingly.
