- Changes to VRT bands will leave more high emissions cars on Irish roads for years to come
13th October 2020 The Irish Car Carbon Reduction Alliance (ICCRA), which represents the majority of new car dealers, states that the Budget 2021 changes to Vehicle Registration Tax (VRT) are anti-motorist, anti-rural and anti-climate, and likely to lead to an increase, rather than a reduction in car carbon emissions. Denis Murphy, ICCRA spokesperson said that no other sector has been hit with such sweeping tax hikes, which he described as an unjust attack on the sector and the thousands of livelihoods it supports. “Today’s hikes are a disproportionate response given that cars account for just 12% of the emissions in Ireland.”
Mr, Murphy said that the changes in the VRT bands will mean price hikes on many popular family models. “Penalising motorists for driving conventional cars is not going to lead to an increase in Electric Vehicles. Rather than incentivising the wide scale adaption of newer, more carbon-efficient cars, people are going to hold onto their current car for longer, resulting in hundreds of thousands of older less carbon-efficient models remaining on Irish roads for years to come.
Mr Murphy added: “With Covid-19 having decimated the new car market and with Brexit on the horizon only adding to uncertainty, the tax increases further threaten the future of the motor sector Ireland. The Ministers for Finance and Public Expenditure and Reform both spoke today about protecting jobs in small and medium enterprises and creating some certainty in these uncertain times. Yet, they have proceeded to do the exact opposite with the retail car sector in Ireland. Jobs will be lost and livelihoods devastated by their decisions. We will now consider what options are available to us including legal avenues to challenges this.