IRHA calls for radical overhaul of road tax system

The Irish Road Haulage Association (IRHA) is calling for a radical overhaul of the commercial vehicle road tax system in the forthcoming budget.

THE IRHA met with the Oireachtas Joint Committee on Finance, Public Reform & Expenditure on the July 17 to outline the urgent need to overhaul commercial vehicle road tax in the forthcoming Government budget.

The IRHA’s proposal to the Oireachtas Committee, presented by the Association President Eoin Gavin, stressed the need for change in this year’s budget in order to stem the ever increasing migration of Heavy Goods Vehicles to alternative jurisdictions, primarily NI and the UK, where road tax costs are a fraction of the overhead experienced by operators in Ireland.
Speaking after the presentation, President of the IRHA Eoin Gavin stated: “The proposal submitted by the IRHA, in it’s pre-budget submission to overhaul commercial road tax, will be revenue neutral from a Government tax take perspective. To date 2,000 vehicles have ‘reflagged’ to other jurisdictions and if no relief is forthcoming in this year’s budget we expect approximately another 5,000 to ‘reflag’ in the New Year. This will create untold damage to the industry, as well as damage to the various local authorities who are extracting huge sums in road tax on an annual basis from the licensed haulage sector.”

He continued: “Following an in-depth assessment of the industry at present, the Association contends that only 400 vehicles will need to come back into the Irish system in order to cover the €20 million cost of supporting the industry. The Association understands that this projection will be easily achieved through the repatriation of vehicles. In addition, a new road tax structure in this year’s budget, as proposed by the IRHA, will facilitate the introduction of a HGV levy to charge foreign trucks while operating on Irish roads. Finally, the whole commercial vehicle taxation system needs to be realigned to ultimately bring about a net gain to the exchequer.”
The IRHA stated their lobby will vigorously continue in order to support and ultimately build on the 50,000 jobs arising from the licensed haulage sector.