- by Bill Bunson
Clamp down on 'crewcab' VRT rates
06 February 2003: The cost of commercial vehicles which have been converted to 'double cab' style so a second row of seats can be installed is to increase in July.
This is because the Government is introducing a 13.3 per cent VRT on the vehicles, which were previously subject to the normal 'nominal' commercial vehicles flat fee of E60.
The change represents a change of heart by the Government, as it was only two years ago that such vehicles were allowed at the commercial vehicle rate.
The increase - which will be announced in today's publication of the Finance Bill - could add up to E4,000 to the price of these vehicles.
Though spokesmen for the Revenue Commissioners and the Department of Finance said they were unaware of any impending changes, it is widely known in the motor industry in Ireland.
And two circulars from the Central Vehicle Office notifying distributors of major changes in how these vehicles will be treated for VRT in the future bear testimony to the intent.
Initially it was intended to apply the new tax regulations from the end of March, but according to a second tranche of official notification this has now been extended to July 1.
Twin Cabs or double cabs, as they have come to be known, have mushroomed into something of a cult purchase.
Originally designed for work crews, these 4x4s have two rows of seats in a reasonable sized cabin and a flat load carrying area outside. They usually have a large diesel engine (upwards of 2.5-litres). Prices usually start around E21,000 ex-works.
For a variety of reasons the regulations governing their taxation was changed from June 2001.
And that had the effect of knocking as much as E7,000 off their price. Naturally, this ignited demand and distributors experienced unprecedented sales in the segment.
One marque, for instance, which used to sell 70 annually recently sold 1,200 in a full year.
Main buyers of the vehicle have tended to be business people and farmers who were able to combine car-like cabin features with pick-up load carrying practicalities.
It now appears the Revenue Commissioners never anticipated the 2001 measures would have such a popular effect.
They thought it would help make utility vehicles less expensive for councils and semi-states.
Instead it opened up a whole new leisure vehicle segment and because of the reclassification it reduced benefit-in-kind for business people.
It was estimated last night that this may have gone from as high as E4,000 to as low as E800 for certain individuals.
The new rate of 13.3pc will mean a decided increase in price but it will still be some way below the pre-June 2001 level when many of these vehicles were subject to VRT at 30pc.
Effectively The criteria for inclusion in the nominal rate have been dramatically changed and few of those currently on the market will meet the requirements of wheelbase length, area of vehicle and weight.
This is the second `hit' on motoring. in recent times.In the Budget, the finance minister Charlie McCreevy widened the 30pc VRT rate to include all cars from 1901cc.
©2003 irishcar.com