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The end of VRT as we know it !!!

  • 12-01-2013 5:38pm
    #1
    niloc1951
    Registered Users, Registered Users 2 Posts: 2,058 ✭✭✭


    THIS ISSUE has been rattling around The High Court for nearly 20 years and is due for decision soon. While it is centered on 'cars' the outcome would also effect other vehicles where the VRT is currently based on a percentage of OMSP.


Comments

  • #2
    Del2005
    Registered Users, Registered Users 2 Posts: 19,030 ✭✭✭✭Del2005


    Since VRT was brought in to replace excise duty, which the EU says is OK, all that will happen if this case is lost by the government is that we will have to pay a differently named tax when we want to register a vehicle. There's too much money from VRT if it's lost they'll have to make it back someway or the other, the other is cuts to services and we know what they cut and from whom.


  • #3
    niloc1951
    Registered Users, Registered Users 2 Posts: 2,058 ✭✭✭niloc1951


    Del2005 wrote: »
    Since VRT was brought in to replace excise duty, which the EU says is OK, all that will happen if this case is lost by the government is that we will have to pay a differently named tax when we want to register a vehicle. There's too much money from VRT if it's lost they'll have to make it back someway or the other, the other is cuts to services and we know what they cut and from whom.

    The court case is not about if there should be VRT, it's about the lack of transparency of how the figure is arrived at, it appears not to be based on the selling price but on a notional 'book' price, there's no consistency to it and it can't be assessed before an importation is considered.

    Most importantly, and this could be unconstitutional, it's based on what the motor trade think it should be (they can decide the OMSP which is key to arriving at the sum to be paid) not the Revenue, how often have you seen an OMSP on the VRT Calculator totally at odds with what a vehicle will actually sell for, so it's open to manipulation by the trade to keep the cost of imports artificially high to protect their own margins.

    It's a long article but well worth a read.


  • #4
    paddyp
    Closed Accounts Posts: 1,927 ✭✭✭paddyp


    As I've said before its incredible how slow the wheels of justice can move when its the goverment on trial, its scandalous that its taken 18 years and is coming to an end now when the country is in recession, the car market in general is in the toilet, emissions standards are up and many of the the complainants have gone bust, retired or even passed away. The boat has truly left the harbour.

    The New Zealand parallel is poignant as it has almost exactly the same population as Ireland yet has imported 10-20 times as many cars per annum, the difference in delivery cost is negligible. The market there is also collapsing due to new emissions standards, regulatory hoops. In fact one of the main shipping companies has pulled out last year after 27 years of shipping japanese cars.

    This ruling is many many years too late.


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