Rising car sales injects €145.5 million extra into the Exchequer – Griffin

Fine Gael Kerry TD and Member of the Oireachtas Committee on Transport and Communications, Brendan Griffin, has welcomed a major boost to the exchequer provided by an increase in VRT and VAT as a result of a sharp increase in car sales.

“So far in 2014, €461 million has been generated from VRT and it is estimated that €224 million in VAT will be paid on new cars.

“This represents an increase of:

·          €97.5 million in VRT compared to the first 8 months of last year

·          €48 million in VAT compared to the first 8 months of last year

·          Totalling €145.5 million extra in the Exchequer compared to last year

“According to the CSO, t he number of new private cars licensed for the first time increased by 37.7 per cent in August 2014 compared to August 2013. This news comes within days of the publication of the latest Exchequer figures which show consumer spending is up 1.8 per cent year on year. It is also very significant that as well as a major jump in the number of new private cars, there was a 52 per cent rise in the goods vehicles licensed.

“ Every car and commercial vehicle that is sold in Ireland results in a VAT and a VRT payment to the state. This revenue had more than halved between 2007 and January of this year as sales collapsed from 186,000 to less than half that figure.

“An increase in car sales is an excellent measurement of public sentiment. People traditionally only make large purchases, like a new car, when they feel they are in a more stable position financially. The economy is finally growing and people are thankfully feeling more secure.

“There are increasing signs of revival in the economy, but it is our priority to secure the recovery for all and to make sure that those who have still not felt the benefits of recovery can look forward to a better future. ”