irishcar.com

15 February 2002: The new Managing Director of Fiat Auto Ireland has called on the Government to abolish Vehicle Registration Tax. And Michael Howe said that the issue of excessive, unjust and anti-competitive taxation on Irish motorists in the form of the Vehicle Registration Tax should be made an election issue by every motorist in the country.

Mr Howe argued that VRT is unique amongst EU members and pointed out that it is ‘a tax on top of a tax and is in breach of the spirit of the Open Market concept on which the EU was founded’.

Irish motorists already paid VAT on cars, on fuel, on replacement parts and servicing as well as an annual road-tax, he added.

“Most surveys confirm Irish pre-tax car prices are among the lowest in Europe, yet the final prices customers pay are among the highest, thanks to double taxation,” he said. “No one likes paying tax, but we all do in the belief that there is an equitable system in place. However the VRT tax on motorists is quite simply a money-grabbing exercise by Minister for Finance and it should be ended now, to bring Ireland into line with other EU countries. Why are we the only country with this tax, why are Irish motorists being discriminated against?”

Pointing to the fact that the revenues collected did not go directly towards road improvement or repair, he said thatIrish motorists have one of the highest tax burdens and some of worst roads in the EU.

Mr Howe pointed to the fact that Fiat’s Open Book policy, introduced in 1995, included the most tax-efficient way to buy a new car and it had reduced Fiat prices by over 13 per cent. “Other manufacturers who are complaining about excessive taxation should follow this example if they are seriously on the customers’ side - but there is no doubt that the Government is the main culprit in retaining a tax that discriminates against people living in Ireland.”