SIMI urges government to cut VRT

THE SIMI is calling for a major cut in Vehicle Registration Tax to help revive a car industry reeling from the combined effects of Brexit and the Covid pandemic.

‘With Budget 2021 only weeks away, now is the time for a significant reduction in VRT. This would enable the car market to 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, said SIMI Director General Brian Cooke.

‘ 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.’

Meanwhile, the motor industry in Europe is slowly reverting back to normal, according to the latest JATO figures.

JATO’s data for 27 markets shows good news after several months of decline in registrations. July saw the highest monthly volume figures so far this year – this also being the highest since September last year – with the industry registering 1,278,521 new passenger cars, down by only 4% month on month from 2019.

July also saw the best monthly variation so far this year. Felipe Munoz, global analyst at JATO Dynamics, said that both private and business consumers are responding to the better market conditions.

‘If the current situation continues to improve, we could start to talk about a ‘V’ shaped recovery in the

European car industry.

‘However, there are still huge uncertainties regarding how and when the pandemic will finally come to an end, therefore caution remains.’ Volumes levels since January fell by 35% to 6.37 million cars. However, demand recorded healthy figures in countries such as the United Kingdom, Denmark and France, alongside other small and midsize markets.

‘Much of this boost can be explained by an increased appetite for green cars, and more value offers,’ Munoz continued: ‘ The increasing demand predominantly favours SUVs, with a wider offering, including more electrified versions.’