Govt urged to eradicate VRT

Irish MEP John Cushnahan has called on the EU to pressurise Ireland into scrapping Vehicle Registration Tax.

The Government introduced the tax as a replacement for excise duty when the then European Community began eradicating barriers to free trade.

The EC is today expected to deregulate the motor industry, a move that will lower car prices throughout the 15 European Union member states.

However, because of the Irish Government’s VRT, Irish motorists will not experience the same benefits as the rest of Europe.

Speaking from Brussels today, Mr Cushnahan said: "Unfortunately, the same single market benefits will not apply in Ireland because of Vehicle Registration Tax. I believe the commission should use its political and moral authority to pressurise our own Government to reduce VRT to ensure that our people can enjoy the same benefits as car drivers in Germany and France and elsewhere."