Change VRT

jimmycrackcorm

Gonna throw petrol in the fire with this suggestion...

One thing the government could do for the Car industry is change the VRT structure to penalize second hand imports but leave new cars as they are for VRT ( or even cheaper perhaps). The rationale is that it's better for the country to have less ex garage staff on the dole and less money flowing out. VRT doesn't have to be calculated on OMSP.

I know the argument about VRT being an unfair tax and why should we not have cheaper cars etc, but simply put, tax money is needed and tax by choice is much better than obligatory tax.

For the record, I don't work in the motor industry and I paid over 14k in VRT myself last year but present economic circumstances dictate unusual methods.

Seth Brundle

You are then restricting the free movement of goods from the EU.
As it stands, all cars pay VRT on the same scale depending on CO2. If the government were to introduce some kind of import restriction then the EU would fine us possibly for more than was made.

Matt Simis

Dont think thats much of a plan.

Government get VRT money (ie Tax) from 2nd hand imports.. if you make it harder for people to privately import you would force them to buy 2nd hand in Ireland, where the Government get no VRT at all.

So your plan would screw lots of "small" people, cost the government tax "revenue" and at best, slightly, prolong the ongoing death of the motor trade. 2nd hand imports are not whats killing the motor trade, the lack of credit and lower (to zero) incomes are.

bromley52

I think the general feeling out there is that the government are going to do something with the car industry. eg €2,500 for < 2000year VRTd cars when buy a new one. Still a rip off though when compaired to UK.

Does anyone one think they will touch VRT? I just paid VRT at 14% but my inner (always try to get away with it) mind tells me I should have waited until after the mini budget, but I feel so patriotic right now for having paid it.

Tipsy Mac

From a government income point of view on 2nd hand car sales they make much more money on imported cars as they take a big VRT take on them. People are not buying new anymore so purchase of imported cars should be encouraged to finance government services.

Carawaystick

aren't all cars imported?? It's been a while since Ford closed down in Cork...

ninty9er

I came in on the end of a conversation between Brian Crowley and someone else on Friday evening, where he basically said there's more liklihood submarines will fly and 747's will do exploratory dives of the Arctic than VRT being changed this year.

Biro

Matt Simis wrote: »

Dont think thats much of a plan.

Government get VRT money (ie Tax) from 2nd hand imports.. if you make it harder for people to privately import you would force them to buy 2nd hand in Ireland, where the Government get no VRT at all.

So your plan would screw lots of "small" people, cost the government tax "revenue" and at best, slightly, prolong the ongoing death of the motor trade. 2nd hand imports are not whats killing the motor trade, the lack of credit and lower (to zero) incomes are.

Once again people are thinking in small terms, just looking at the VRT cheque that comes in the door. When weighing up anything the big picture needs to be looked at. Ask any economist in the world (any good one) and they'll all tell you the same story. Money leaving your economy is a bad thing. All the millions of Irish earned money being spent in England is having a negative effect on the Irish economy. Granted the VRT generated from Imports is having a positive effect, but unless someone thoroughly investigates everything then general statements and conclusions are pointless.