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Irish Motor Industry in a 'crisis' Despite low car, fuel and insurance

With vehicle prices, fuel costs and car insurance premiums still low, the government urged to act quickly to try to stem the flow of sales to declining revenues for the new car.

In 2007 the Irish Government received income of € 2 billion from the automotive industry, but this number decreased to € 1.5 billion for 2008 and projected figures show an even more alarming drop € 500 million this year.

The Society of Irish Motor Industry (SIMI) showed that sales of new cars fell by nearly 70 percent in January and expressed that the Irish motor industry was in a "crisis." More bad news released by SIMI, the number of cars imported from the United Kingdom and Northern Ireland had grown, sparking fears of further job losses in the industry to cope with the 3,000 already lost in the last three months.

Director-General of the Association of Irish automotive, Alan Nolan, said the Government urgently introduce measures to protect 50,000 jobs and save the loss of sales of new cars. SIMI have proposed the introduction of car scrapping scheme for all vehicles over 10 years old, in order to remove them replaced by a newer, safer and cleaner vehicle fleet.

Mr. Nolan would like to strengthen enforcement against dealers and motorists who do not pay to see the vehicle registration tax (VRT) on imported cars. Dealers are also incensed that under current law, they are asked to pay VAT on all transactions, even if they end up making a loss. This is described as an "unacceptable tax "by Mr. Nolan, who emphasized that the amendments to the VAT system would be self-financing and no further costs to the condition.

If a dealer to buy a car for € 15,000 and sells it for € 10,000 to a loss of € 5,000, they would still have to pay VAT on the full € 15,000 to The car was bought in the first instance. Ireland is currently the only EU country that a VAT imposed on a transaction produces a loss.

SIMI also claimed that it is "Unfair" that dealers expect the VRT regime, which means that tax is paid to the tax commissioner for imported cars basis of their market to force. They believe that the rules on re-registering imported cars should be maintained and illegal car dealers along the road through Revenue flushed.

About the Author

Rochelle Martinez, Freelance Web Content Article Writer for three years.

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