Proposed Changes to VRT Counterproductive to Climate Objectives – SEAT Ireland.

• SEAT Ireland says proposals to reduce VRT rebate ceiling on Battery Electric Vehicles (BEVs) will negatively impact the Government’s climate goals.
• Price of a SEAT Tarraco (pictured above) would increase by €2,820 under the Tax Strategy Group’s proposed VRT bands.
• Next month’s Budget needs to incentivise uptake of newer, cleaner internal combustion engine vehicles in order to meet emissions targets.
• Proposed measures will increase price of low- and zero-emission cars and encourage motorists to hold on to older, higher CO2 emitting cars. 

SEAT Ireland says proposals by the Department of Finance’s Tax Strategy Group (TSG) Vehicle Registration Tax (VRT) bands for low emitting vehicles will have a negative impact on long-term climate goals.

By raising the VRT rate on passenger cars with CO₂ emissions above 100g/km, and forcing motorists to hold on to older, more polluting vehicles, the Government is undermining its ability to reduce total emissions. Under the TSG proposals, car prices would increase by around €1,294 on average.

SEAT and CUPRA Ireland Brand Director Niall Phillips says price hikes will impact consumers and are counterproductive to “greening” the fleet.

He said: “Under the current proposals, the price of a popular family car like the SEAT Tarraco would increase by €2,820. The limited consultation between the Tax Strategy Group and the motor industry has resulted in tax proposals that will hamper our ability to persuade customers to change to lower C02 cars and electric vehicles. We need measures that encourage uptake of efficient vehicles and help us achieve the long-term ambitions of the Climate Action Plan.”

Justin Galvin, Managing Director of CUPRA and SEAT retailer Finbarr Galvin Ltd in Bandon, Co Cork, said: “The Government is targeting the motor industry to raise more taxes with no concern for the consumer. If these changes to the VRT system go ahead, they will negatively impact customers’ ability to change to a cleaner vehicle. The motor industry has suffered like most industries over the last number of years and these proposed changes will further negatively impact livelihoods of many in our industry.”