Exchequer up €171m on New Vehicle Sales VRT & VAT – Griffin

Fine Gael TD for Kerry, Brendan Griffin, has been informed by Minister for Finance, Michael Noonan TD, that increased sales of new vehicles have resulted in a major increase of €171 million in tax for the exchequer.

In response to a Dail Question from Deputy Griffin, Minister for Finance, Michael Noonan, said that the increase in VRT on new vehicle registrations from January to September 2014 compared to the same period in 2013 is €87m, an increase of 30%. The corresponding increase in VAT is estimated to be €84m, an increase of 32%.

“These figures are extremely good news for the exchequer and there are a positive indicator of improving consumer confidence.

“I warmly welcome these new figures. €171 million is an enormous amount of money and is a great help to the running of the state. On top of the actual cash generated, the increasing new vehicle sales indicate that consumer sentiment is improving rapidly and the increases in commercial vehicle sales indicate that business owners are broadly optimistic about the future of our economy.

“In Budget 2015, the Government chose to help protect the recovery in the motor sales industry by not increasing VRT, motor tax and fuel taxes. I am confident that these measures will help continue the flow of revenue from increasing new vehicle sales for the rest of 2014 and into 2015. This will also sustain and create jobs in the motor industry and will help build a more modern and a safer fleet of vehicles on Irish roads. This additional revenue will also go towards additional Gardaí in our towns and villages, to supporting the 1,700 new teachers announced in the Budget and towards creating more jobs and securing the economic recovery.