SIMI reiterates scrappage scheme call
Tuesday, 10 November 2009 16:28The body representing the motor industry has repeated its calls for a scrappage scheme to be introduced to help the industry.
In its pre-Budget submission, the Society of the Irish Motor Industry urges the Government to bring in such a scheme from January 2010, to operate for 12 months.
Under the SIMI plan, there would be a €2,000 refund of Vehicle Registration Tax when a ten-year-old car was scrapped for a new car.
The body says the motor industry has lost 10,000 jobs over the past two years, and another 10,000 could lose their jobs next year. It says current predictions are for new car sales next year to remain at 2009 levels of around 60,000.
SIMI is also calling for a VRT refund scheme, which would refund Irish car dealers when they exported a used car. It also wants the 13.5% VAT rate on repairs and car servicing to be retained or reduced.
The industry body has also urged talks with other interested parties on changing the current registration plate system, arguing that it produces 'an extreme form of seasonality' in car sales which does not benefit the industry, the Government or the consumer.
It also calls for the Government to clarify its plan for VRT - in the light of the Commission on Taxation's recommendation that it be replaced by usage taxes.
