Revenue gets €1.3bn boost from car sales
There were 137,000 new vehicles registered in the first six months of the year as the rush to buy new motors gave a massive boost to State coffers.
The motoring boom is not confined to cars. New vans are selling at record levels up 29% on the corresponding period for 2004. And new lorry sales have jumped by 24%.
Industry sources forecast that up to 165,000 new cars will be bought in 2005.
Millennium Year set records for new car sales as 230,000 motorists cashed in on the country's continuing economic growth to sport a shiny 00-registration plate.
Dealers across the country expect €1.1bn will be spent on new cars next year and in 2007 as SSIA savings accounts mature.
The Society of the Irish Motor Industry (SIMI) welcomed the 12.9% increase in new car registrations.
However, SIMI chief executive Cyril McHugh noted: "It is necessary to point out the huge contribution which Irish motorists have made to the Exchequer over the same period.
"The total tax take from new car purchases from January to June is made up of 876m in Vehicle Registration Tax (VRT) and €438m in VAT. These combined at €1.3bn make up approximately 7% of overall government revenue. This is a huge proportion of Exchequer returns from a single industry sector."
Mr McHugh said the Government needed to look at "the unacceptable burden" posed by VRT on the motorist.
Toyota topped new car sales for the first six months, selling 19,425 for a 14.16% market share. Ford's new Focus was the most popular new car in 2005, with sales of 1,100 in June alone.
Figures released by SIMI show that the overall government take on taxation for the motor industry this year amounts to €3bn.
Much of the remaining tax take up comes from fuel, road tax, benefit in kind as well as VAT on repairs.
The motor group claims that up to 17% of the government's revenue intake comes from the sum collected in the industry.
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