Are pre-tax prices still lower in Ireland?
In 2000 I exported a new, unregistered car to the UK and registered it there. At the time, pre-tax prices were cheaper in Ireland than the UK and the taxes were lower in the UK. So, this all made sense, then. Is it still the case that pre-tax prices are lower in Ireland?
Trevor Hampson (Macclesfield)Jun 2014 Filed under: VRT
Expert answer
Hi Trevor,
It would seem not. Certainly it was the case some years back when car makers often 'de-contented' (i.e: stripped out) their cars to help compensate for Ireland's staggering levels of vehicle taxation, but the situation seems to have stabilised now.
According to the Society of the Irish Motor Industry, to whom we spoke about this, the last official EU survey on pre-tax prices carried out in 2011 showed that the gap was, in some cases, still there, but was narrowing.
In a statement, the EU said that "The Commission continues to monitor the competitive situation on the new cars market, as well as the markets for spare parts and repair and maintenance, in cooperation with National Competition Authorities. The Commission is committed to safeguard competition in this sector and will not hesitate to take the necessary enforcement action if problems arise."
Basically, the changes in the tax system in Ireland since 2008 have meant that we're much more in line with the rest of Europe than was once the case.
Now ask us about the post-tax price...
Neil Briscoe - Complete Car Adviser
@neilmbriscoe