The motor industry has renewed its call on the Government to reduce vehicle registration tax in the upcoming December budget.
With a 12.2 per cent rise in new car sales so far this year, the Government is expected to take in an extra €120 million in VRT and an extra €60 million VAT by the end of December.
"This should be returned to motorists by way of a VRT reduction in the December Budget giving motorists a better deal", said Cyril McHugh, chief executive of the Society of the Irish Motor Industry.
The Government is coming under pressure to reduce VRT, which is criticised as being anti-competitive, damaging the motor industry and placing an unfair burden on motorists. The European Commission has requested the Government to phase out the tax over a ten-year period.
New car sales for September were 7004, an increase of 15 per cent on September of last year. Sales from January to September were 165,247, an increase of 12.2 per cent on the same period in 2004 (147,251).