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Dropping VRT on GB imports

  • 26-01-2022 8:00pm
    Registered Users Posts: 4,054 ✭✭✭ KevRossi

    With the introduction of Customs and VAT on cars from GB (UK with NI excluded) it means that one of the main supply routes for used cars here is drying up fast. Add on VRT and it means that more cars are coming here from Japan etc.

    The new customs and VAT is near enough the same as the old VRT rate, so is it not time that they considered removing VRT from GB cars to make them more accessible to buyers and to ensure that Revenue still get near enough the same income from this source. The major drop off in 2nd hand cars coming in must have some affect on Revenue's income.

    If the massive number of Japanese imports continues then surely the Greens should be interested as freight ships are the most directly polluting form of transport that exists (doubt they'd really grasp this though). More 2nd hand cars from Japan means more emissions en route.

    Second hand car prices are going silly recently, so isn't it worth thinking about?


  • Registered Users Posts: 314 ✭✭ walshtipp

    I don't think that is going to happen any time soon, at least not for petrol/diesel cars. To be honest, I think there is way better quality and value in the cars coming from Japan, especially when sticking with the Japanese manufacturers like Toyota, Honda, etc. For long enough Ireland has been a dumping ground for Britain's dirty diesels. Yes they have a longer distance to travel to get here, but that is another issue.

  • Registered Users Posts: 2,886 ✭✭✭ Montage of Feck

    More Japanese imports please and if the greens really cared they would bring in Kei car incentives.

  • Moderators, Business & Finance Moderators, Motoring & Transport Moderators, Society & Culture Moderators Posts: 63,113 Mod ✭✭✭✭ L1011

    There would be no mechanism to drop VRT for imports from one source and not another - it is a registration tax, not an import tax.

  • Registered Users Posts: 6,638 ✭✭✭ zilog_jones

    Why would it be in Revenue's interest to incentivise importing used cars from the UK over other markets? Surely, if anything they want more people buying new cars in Ireland? That's probably what needs to happen to cover the shortfall in the long run, it'll just take time.

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  • Registered Users Posts: 2,597 ✭✭✭ Casati

    VRT across the board has increased massively except for v low Co2 cars. As a result car manufacturers have increased prices of PHEV’s and EV’s as average car prices move up. Talk to your TD about if you like this or not, for me the tax take is far too high now

  • Registered Users Posts: 1,367 ✭✭✭ Shane O' Malley

  • Registered Users Posts: 1,367 ✭✭✭ Shane O' Malley

    Sorry, I am not sure how it works but would you not have to pay customs and vat on Japanese cars in the same way as UK cars.

  • Registered Users Posts: 75,796 ✭✭✭✭ Atlantic Dawn

    Yes but the money isn't there for everyone to switch to buying brand new cars. When UK imports were coming in a lot of them were 2-3 years old, this meant that VRT money was coming in for these, those owners old cars were going down the foodchain and the higher polluting cars were gradually going off the road. What is happening now is Revenue are making less overall as the imports markets has scalled back and more older cars are being kept on the road.

    A 6 month drop or abolishment of VRT for certain emissions based used cars imported from anywhere could be done without the EU blocking it. They would still be getting the VAT from UK and Japan sourced cars which could act as a replacement.

  • Registered Users Posts: 50,431 ✭✭✭✭ bazz26

    Is revenue from VRT really down by much though?

    The demand for used cars is still there, if anything it's stronger now due to the chip shortage on new cars as well as Brexit. However dealers are still bringing in vat qualifying cars from the UK and selling them here for much more than pre Brexit prices due to that increased demand meaning increased VRT for the tax man. So for the private importer VRT intake might be down but those buyers still want to buy so will either import from the North, Japan or just buy a car already here.

    Also you cannot just turn off or on VRT for a period of time like a tap? VRT is integrated into our used car prices too. Turning it off a period of time would just throw the used car market into turmoil. What would happen to resale values of used cars that paid VRT versus those that had it abolished for a period of time? Realistically there is no easy way to get rid of VRT now without the arse falling out of used car values for everyone.

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  • Registered Users Posts: 3,518 ✭✭✭ goochy

    I noticed main dealers even selling japanese imports now , Michael Moore Portarlington ! Thats if he still is a VW dealer ?

  • Registered Users Posts: 1,786 ✭✭✭ Miscreant

    The Government is not going to drop VRT on GB imports or any other imports for that matter. The amount of "whataboutery" that would occur if this was done would not be worth the hassle.

    Drop VRT on GB imports and then some other lobby group opens up about dropping it from another country (take your pick). When that is refused then you can imagine the fake outcry of bias or prejudice that will inevitably spill into the social and print media.

    It would also open up the whole conversation again of why it is there in the first place. if it can be dropped for 1 economic area, the why not completely drop it for everyone.

    Every country has a registration tax of some kind on vehicles, regardless of whether they come from the next country over or from across the other side of the world.

  • Registered Users Posts: 5,537 ✭✭✭ Leonard Hofstadter

    Whatever about VRT, they have to charge customs and VAT due to the nature of the agreement the UK made with the EU. If they wanted more integration with the EU, then I'm sure it would be possible to get rid of customs duties (like what is happening with the EU-Japan trade deal, where customs duties on cars are being phased out over a number of years, meaning on a Jap import it will be just VAT and VRT rather than VAT, customs and VRT like from the UK).

    By the way, second hand prices in the UK have gone through the roof, so second hand cars would not be the bargain they once were even if we could import from the UK like we could before 2021 (though of course it would help enormously).