The extension of the scrappage scheme for the first six months of next year will be widely welcomed by the motor industry
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 scheme.
The Minister of Finance Brian Lenihan also announced a rise in excise duty on petrol and diesel with a litre of petrol up by four cents and diesel by two cents a litre.
The AA has said the four cents per litre increase in petrol prices has pushed prices to an all-time record high.
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. An estimated 3,000 plus jobs have also been created in the past year, and this is also largely credited to the scrappage scheme.
The extension of the scheme 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. Currently there are 140 motor industry jobs advertised on the site.
The motor industry is also engaged in a national programme aimed at recruiting an extra 150 new apprentices over the coming weeks.
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.
For hard pressed commercial vehicle owners, the budget brought a double hit. In addition to the increase on diesel duty, the Vehicle Registration Tax was increased from the current flat rate of €50 to €200 from May 1 next year.
Motor tax rates have been left unchanged, although the Government’s four-years 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.
