Ford responds to Budget 2012

Eddie Murphy, Chairman and MD of Ford Ireland, responds to VAT and road tax increases.

Eddie Murphy, Chairman and managing director of Ford Ireland has responded to the increases in VAT and road tax announced by Minister Michael Noonan as part of Budget 2012:

"I feel the increase in VAT is a retrograde step both for the whole economy as much as for the motor sector.  For Ireland's top selling model, the Ford Focus, the VAT change will add about €450 to a new car. That is regrettable because in many cases, car owners have deferred renewing their cars over the last number of years, and I really get the sense that every euro counts for a lot of customers in that position.  Having said that, I do think that, even with the VAT increase, there is still a lot of good value out there for customers who are looking for a new car in 2012."

"The road tax increase represents a significant row back on the CO2-based taxation system that was introduced in 2008, as it hits hardest those car owners who opted for lower A and B band cars that produce the lowest CO2 emissions. In so doing, the Minister is negating a lot of the environmental gains that the industry has made over the last number of years."

However Mr Murphy does see one plus point in the budget announcement:

"On a positive note, I am sure the industry will welcome the initiative on export tax relief which brings us into line with other EU countries."

Published on: December 7, 2011