Commercial vehicle tax — ridding a loophole or taxing the masses?

This week’s circular from the Department of the Environment to county councils on the requirement for a Goods Only Declaration when taxing small commercial vehicles has caused quite a stir and really has done nothing for the waning popularity of the Greens in government.

In one way the annoyance with the party is hardly surprising as we have seen huge fuel hikes since their reign in government with Fianna Fail, but on the other hand this particular law was already in place and the obligation on commercial vehicle owners to register their vehicle as such was always there but was not necessarily enforced. The enforcement of the law is the big problem for people.

There is outcry among the farming community as this is an area where commercial vehicles are used for many many tasks, which may well include collecting the kids from school or popping to the shop for a pint of pasteurised milk. However, I am not sure that these are the people that the Government is targeting.

It is clear that there has been a loophole in this area for some time and that people have been importing or buying vehicles and modifying them so that they become commercial vehicles on inspection but are then remodified and are returned to their original domestic vehicle status following inspection. This type of activity is clearly wrong and should be targeted by the Department and gardai. However, whether they are going about targeting the behaviour in the right manner is a different story.

This new obligation will see farmers, plumbers, carpenters, and other small business people who are already stretched to the pin of their collars struggle with whether or not they are allowed to use their commercial vehicle for travel outside of to and from the workplace. If they are caught using it outside of these limitations, they may now be subjected to a fine of €900 although they are only using their vehicle as they always did.

Many small businesses cannot afford to risk being caught as this fine could be more than they would earn in a week, or even a month in some cases, in these economic times. And most business people cannot afford the luxury of having a private car and a commercial vehicle for work.

It will be interesting to see if anyone is fined for bringing the kids to school in the farm Jeep, or for taking granny out for the day. I am sure it will not happen — but one has to bear it in mind — it is against the law!

 

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