SIMI welcome EU's proposal to phase out VRT
The Society of the Irish Motor Industry (SIMI) today welcomed a decision of the EU Commission to bring in a Directive forcing member states to phase out Vehicle Registration Tax (VRT) over a ten year period.
The Commission said that VRT is contrary to the spirit of the single market and that this move will improve the functioning of the internal market and promote sustainability.
Cyril McHugh, Chief Executive SIMI said: "SIMI has been lobbying the Government and the EU Commission to reduce VRT for over a decade based on its inequity within the single market and we are very pleased to see that the EU Commission is now putting pressure on member states to do so.
"We strongly recommend that the Government take the Commission's proposal into consideration in the December Budget and start to reduce car prices for Irish motorists.
"So far this year motorists have paid €876m in VRT which makes up 5% of total tax revenue for the Exchequer for the first six months of the year.
"The total tax take from all motoring taxation for the half year constitutes about €3bn or 17% of all government revenue. This is an unfair burden on one sector.
"The Government should listen carefully to the EU Commission, particularly after the French and Dutch votes on the EU Constitution.
"If a Government is clearly seen not to be playing by the rules of the EU, then it is very easy to understand why its citizens might be sceptical of other proposals from the European Union."
