Broad welcome for Budget from motor industry

The Society of the Irish Motor Industry (SIMI) has today welcomed the significant reductions in VRT for more environmentally-friendly vehicles introduced in today's Budget.

SIMI chief executive Cyril McHugh said that the motor industry is committed to developing more efficient and cleaner vehicles and that the industry broadly supports for a move towards CO2-focused taxation.

"This [Budget] will give a clear focus to potential car buyers on CO2," said McHugh.

"In the medium to long term, it will increase the proportion of diesel cars being purchased. At present Ireland is below the European average on diesel sales."

SIMI also welcomed the continued investment in national road infrastructure and public taxation.

"The increase in road tax is unjustified; given that motorist already pay over €5.6bn per annum in motor related taxation," said McHugh.

"SIMI would like to see all road tax being ringfenced for non-national road improvements."