FTAI says commercial motor tax cut is boost for Irish business

FTA Ireland [FTAI] says the substantial cut in commercial vehicle motor tax announced in Tuesday’s Budget will make Irish hauliers more competitive in the European market.

Finance Minister Michael Noonan announced a reduction to a maximum of €900 per vehicle per annum. FTAI has campaigned for a cut for several years because Ireland was losing out to Eastern Europe and the UK on truck registrations as operators chose countries with lower tax rates.

This also meant that Irish drivers were losing recruitment opportunities to foreign drivers, and the Irish Exchequer was losing taxes on both vehicles and employees. Tuesday’s announcement by Minister Noonan takes Irish commercial vehicle motor tax, which was the highest in the Organisation for Economic Co-operation and Development, below its UK equivalent.

Neil McDonnell, FTAI’s general manager, said: “While we campaigned for the abolition of commercial motor tax in favour of a road charge, we welcome Minister Noonan’s announcement of a significant reduction. This will improve the cost of doing business in Ireland. It takes Irish commercial vehicle motor tax below that of the UK, and the Minister has signalled that this is a prelude to changing the basis of assessment to gross vehicle weight in 2016.”



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