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Forget Apple's €13-billion over how many years, the Irish motorist is fast returning to his or her previously held position as the government's number one cash-cow, having pumped €1.2-billion into the national exchequer up to the end of August. Incidentally, that's just in terms of Vehicle Registration Tax and VAT on car sales, and doesn't include millions more on motor tax, fuel duty, insurance levies and VAT and servicing costs.
August sales were up 14 per cent on the same period last year, totalling 7,313 sales (up from 6,400) but that does represent a significant slow-down compared to the year overall - car sales, year to date, have risen by 19 per cent in total, and now stand at 138,538 units.
Commenting on the figurers Society of the Irish Motor Industry (SIMI) Director General Alan Nolan said: "The Motor Industry has been working hard to deliver the continuing level of growth in what has been a noticeably more difficult market since June. As we move toward the end of 3rd quarter of the year the Industry remains focused on business still to be done, with strong offers still available for consumers. In contrast with the era before the two-period registration system was introduced, when sales were all but finished in the first quarter, the interest in new vehicle sales now tends to carry to the end of the third quarter, but obviously at a lower rate.
"We believe the Industry is still on course to deliver close to 150,000 new car sales by the end of the year, indeed new car sales have already generated €1.2 Billion for the Exchequer in VRT and VAT receipts. Our Industry currently employs over 42,000 people nationwide and it is crucial that the provisions in the forthcoming Budget for 2017 support rather than undermine the State's tax revenues and employment across the sector. It is important that Budget 2017 contains measures that improve the position of both consumers and businesses. The potential for post-Brexit Sterling exchange rates to drain business away from the Irish domestic economy was highlighted by the increase of 76% in the number of Imported Used Cars in July, so clearly the last thing we need at this stage is any further damaging tax increase in the forthcoming Budget. Suggestions of piece-meal increases on diesel fuel or indeed on Road Tax being considered, at a time when soaring insurance costs are already impacting, would be damaging and extremely ill-conceived given that a new EU emissions regime is being rolled-out from next year which will require a major review of our current environmental taxation.
"Our Industry, like the rest of the domestic economy, needs stability and as much certainty as is possible to support consumer and business confidence, especially given concerns regarding Brexit, in order to support a continuation of the recovery and progress of the past few years."
In terms of the best-selling makes and models, Hyundai still reigns supreme with the Tuscon still top of the charts, while the Volkswagen Golf has now overtaken the Ford Focus for second place with the Skoda Octavia and Nissan Qashqai completing the top five. The bestselling brands are currently Hyundai, Toyota, Volkswagen, Ford and Nissan.