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

Brendan Griffin Kerry

Thursday, 25th September 2014

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, the 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.” Ends

Parliamentary Question from Thursday 18th September 2014 Brendan Griffin: To ask the Minister for Finance the increased yield to date in 2014 compared to the same period last year and in 2012 in taxes and Government charges related to the sale of new motor vehicles; the anticipated end of year increase in revenue; his views that this increase in revenue will be continued in 2015; if he views increasing vehicle sales as a positive economic indicator; and if he will make a statement on the matter. Michael Noonan: I am informed by the Revenue Commissioners that the available information to August 2014 is in respect of VRT on all motor vehicles and estimated VAT as follows: Year VRT VAT (Estimated) – €m €m 2012 (8 Mths) 361.8 175 2013 (8 Mths) 363.5 176 2014 (8 Mths) 461 224

The anticipated yield in respect of VRT for the full year 2014 is €543m, which is €106m more than the full year in 2013.

It should be noted that receipts shown are for the period January to August each year. The 2014 receipts are provisional at this time and may be subject to revision.

New motor car sales to end August 2014 were 86,144, an increase of 20,174 (or 30.6%) on the same period in 2013. Indeed, it is estimated that new car sales this year will be the highest since 2008. There has also been an increase in the sales of commercial vehicles of the type used by small and medium enterprises. To end July 2014, there have been 12,977 registrations of new commercial vehicles used for the carriage of goods (categorised as Category C for VRT purposes), a 3,462 (26.6%) increase on the same period in 2013.

I view the increase in motor vehicle sales this year as a sign of increasing confidence in the recovery of the economy.

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