SEAT Ireland is the latest voice to criticise recently proposed VRT changes made by the Department of Finance’s Tax Strategy Group (TSG) which would see Vehicle Registration Tax (VRT) bands for low emitting vehicles raise. This the company says will have a negative impact on long-term climate goals.

SEAT and CUPRA Ireland Brand Director Niall Phillips said, “Under the current proposals, the price of a popular family car like the SEAT Tarraco would increase by €2,820. The limited consultation between the Tax Strategy Group and the motor industry has resulted in tax proposals that will hamper our ability to persuade customers to change to lower C02 cars and electric vehicles. We need measures that encourage uptake of efficient vehicles and help us achieve the long-term ambitions of the Climate Action Plan.”

Justin Galvin, Managing Director of CUPRA and SEAT retailer Finbarr Galvin Ltd in Bandon, Co Cork, said,  “The Government is targeting the motor industry to raise more taxes with no concern for the consumer. If these changes to the VRT system go ahead, they will negatively impact customers’ ability to change to a cleaner vehicle. The motor industry has suffered like most industries over the last number of years and these proposed changes will further negatively impact livelihoods of many in our industry.”

The SIMI has also been very critical of the proposals arguing, “At a time when the Government wants people to move into electric vehicles (EVs), the TSG’s proposed recommendations include an increase in Vehicle Registration Tax (VRT) on EVs by an average of €1,500, with some of the more popular family models receiving a price hike as a result of up to €2,800. Other new cars, even those with much lower emissions than cars currently on the road, would also suffer an average tax increase of over €1,300, despite already being targeted in last year’s Budget. The proposals to reduce the threshold for the VRT relief on electric vehicles would result in increased VRT on over 70% of EVs currently for sale. This would mean that consumers will have to pay more tax next year to make a better environmental choice.”