The Society of the Irish Motor Industry (SIMI) has called for a reduction in Vehicle Registration Tax (VRT) to be included in the next government budget.
Brian Cooke, SIMI director general said a reduction in VRT would “save jobs” in the motor industry in Ireland.
The comments come after the latest figures show new light commercial vehicles (LCV) registrations for August were down 11 per cent (1,683) compared to August last year (1,891) and year to date are down 23.8 per cent (16,700).
Heavy goods vehicle (HGV) registrations are up 20.13 per cent (185) in comparison to August 2019 (154). Year to date HGVs are down 25.6 per cent (1,641).
Cooke commented: “August represents another disappointing month for new car sales, with sales again down on the same month last year, as they have been each month of 2020.
“This has led a year to date reduction of 29 per cent in new cars sales, and a 43 per cent reduction over the last four years. The Industry is operating at the same business levels as 10 years ago, when the sector shed close to 15,000 jobs.
“The outlook for 2021 is not optimistic, with the negative impact of both Covid and Brexit, new car sales will continue at recession levels.
“The motor industry in Ireland supports employment in local communities throughout the country and to protect these jobs it needs a fair taxation environment in which to operate.
“With Budget 2021 only weeks away, now is the time for a significant reduction in Vehicle Registration Tax (VRT).
“This would enable the car market return to normal sustainable levels that would not only save jobs, but increase overall tax take and help renew the Irish car fleet, reducing both the age of the fleet and emissions from transport.”