As you will know by now, the scrappage scheme has been extended to cover the first six months of next year, Finance Minister, Brian Lenihan has announced, as part of his Budget speech in the Dail.
The extension of the scrappage scheme will be widely welcomed by the motor industry, which had called for the scheme to be extended. The scheme will now run to June 30.
Government coffers could be boosted by up to €40 million in the first six months of 2011 if 10,000 cars are sold under the extended scrappage scheme.
Petrol and diesel prices rise
The Minister also announced that excise duty on petrol and diesel were to rise. Excise duty on a litre of petrol will rise by 4 cent, while excise duty on diesel will rise by 2 cent per litre.
The AA has said that the 4 cent per litre increase in petrol prices announced in the budget will push prices to an all time record high.
More jobs to be created in motor industry
Many thousands of jobs were saved last year in the motor industry due to the introduction of the Government Car Scrappage Scheme in the last budget. On top of those retained that may have been lost during 2010, an estimated 3,000 plus jobs have also been created in the past 12 months, and this is also largely credited to the scrappage scheme.
The extension of the scrappage for the first six months of 2011 should protect those job gains and help create more vacancies, according to RecruitAuto.ie To celebrate the good news that the scheme has been extended, www.RecruitAuto.ie has extended its free recruitment service to auto industry employers and jobseekers alike. Currently there are 140 motor industry jobs advertised on the site.
The motor industry is also engaged in a national program aimed at recruiting an extra 150 new apprentices over the coming weeks.
VRT exemptions extended for hybrids
Finance Minister Brian Lenihan has also extended the VRT exemption for series production electric vehicles, which was due to expire at the end of December.
The exemption has been extended until the end of 2012 as has the VRT relief of up to €2,500 for series production plug-in hybrid electric vehicles.
Truck owners hit on the double
For hard pressed commercial vehicle owners, the budget brought a double hit. In addition to the increase on diesel duty, the Vehicle Registration Tax (VRT ) was increased from the current flat rate of €50 to €200 from May 1 next year.
Motor tax rates remain unchanged
Motor tax rates have been left unchanged, although the Government’s four-year National Recovery Plan states an intention to adjust the CO2-based tax band for cars by 2013. This is likely to involve changes not only to the bands but will also impact on VRT rates on new cars.
