Irish Government under Pressure to Abandon Vehicle Registration Tax

A campaign on Facebook set up in protest against Vehicle Registration Tax (VRT) in Ireland has been backed by the support of nearly 6,000 people who want the Irish government to scrap the VRT, introduced in the country as part of a nationwide crackdown.

The campaign was launched following accusations that customs officers had been targeting UK and Northern-Irish registered cars with UK number plates in the Donegal area. This had led to 42 vehicles being seized and 68 motorists being handed written warnings.

Ryan Stewart, a resident of Donegal had initially set up the page on the social networking site for people to vent their anger at how the local community had been treated so unfairly during the customs clean-up operation.

Local residents had been enraged after it was claimed that Customs had taken €500,000 in revenue in the Donegal area, compared to just €8,000 after a similar customs operation in Monaghan and Louth.

Mr Stewart, creator of the Facebook campaign said, “There has been unbelievable support for the campaign. I set it up so people could have a rant and it has taken on a life of its own. There really is a ground swell of support. Nearly 6,000 in nine days is incredible.”

The campaign has received cross-party backing within the county from Fine Gael, Sinn Fein and Labour, with representatives maintaining that the VRT is an illegal tax under the Treaty of Rome and its introduction contravenes the fundamental rules of free trade within the EU.

Donegal county councillor, Padraig MacLochlainn said, “The Irish government pulled a sleight of hand to introduce Vehicle Registration Tax and people are paying thousands for a number plate. There has always been latent anger about this. The government has argued they cannot afford to give it up. In 2007, it was worth €1.4 billion in Vehicle Registration Tax but in 2009 that collapsed to €375 million. They had the opportunity to do something about it, to find other ways to raise revenue but they sent in the Customs officers who have acted in a draconian fashion using strong-arm tactics.”

An Irish Revenue spokesperson said, “Revenue is satisfied that Vehicle Registration Tax is not in convention of EU law. Section 132 of the Finance Act 1992 permits the Revenue Commissioners to charge Vehicle Registration Tax on the registration of vehicles in the State.”

Author: Lee Sibbald, June 1st, 2010
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