Fleet News

Irish taxation under fire

IRISH car taxation has come under fire from one of Ford's top European executives, who is calling on the government to follow the lead of the British car tax system.

Ford Europe's president and chief operating officer Martin Leach described the system as 'penal' and 'outmoded' and claimed it did nothing to help the environment.

Addressing business leaders in Cork, Leach called on the Irish government to consider a 'green' approach to car tax.

Vehicle Registration Tax (VRT) in Ireland is levied on cars according to engine size, starting at 22.5% on cars below 1,400cc and rising to 30% for larger engines.

Leach presented the case for tax bands based on emission levels, as in the UK. He said: 'After all, this is where efforts in research and development are aimed - not at producing cars with smaller engines, but cleaner cars, with lower emissions.'

He criticised changes announced in last year's budget, in which VRT on cars between 1,900cc and 2,000cc was raised to 30%.

Leach claims this would have a 'negative effect on emissions'.

He added: 'Most diesel cars have 1,999cc engines and the tax hike will discourage sales of these cleaner engines.'

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