VRT appeals make sense for imports

HELPDESK:Answering all your motoring queries

From KS: I am from the UK and I came over with my car, which I had not owned for more than six months in the UK before moving. I went down to the VRT office and they charged me a whopping €1,600 to change the registration. My car is a 1991 Nissan Figaro, it’s a collectable car, but they were all made in 1991 and have the parts/ engines etc of a Nissan Micra.

I’ve written to the VRT office but I think it’s disgraceful that they can charge prices like this and make you pay before you can appeal even when it’s so obviously unfair. I’ve been charged more than a Range Rover or a Porsche – my car is cute but not in that league. I bought the car from Japan and the charge to change it to UK plates was £50.

According to figures from the Revenue, out of 847 appeals against the VRT charged on imports last year, 747 involved a refund to the motorists. Those sort of statistics would suggest that you are well advised to consider an appeal.

While the number of appeals is quite small considering 39,169 used vehicles were registered last year, it could be argued that many motorists simply grumble at the charge but do no more.

In your case a spokeswoman for the Revenue said the VRT charge payment is based on a valuation of €6,800 on the Figaro and at a rate of 24 per cent based on the car’s official emissions of 169g/km. She said the requirement to pay before an appeal is heard is due to a legislative requirement in the Finance Act 2001.

In fairness the depreciated valuation on your car does seem reasonable, based on the open- market selling price that Figaros of a similar age are selling for at present.

Examples of Figaro models from 1991 being advertised at present show them selling for between €7,000 and €8,350.

Yet even if in your case the Revenue’s figures do stand up on appeal – and you will need to provide supportive evidence to argue that the valuation is too high – the success rate for appeals suggests that more disgruntled motorists should pursue their arguments in this forum.

Making a comparison with the registration costs in the UK merely highlights the much higher tax burden on all Irish motorists and our registration tax system.

The biggest problem is with the punitive VRT system itself, but given the upheaval caused by the change to emissions-based taxation in 2008, I’m not sure there is a public appetite for another overhaul right now. A cut in VRT now would be great for first-time buyers, but if new car prices were to drop so too would used car prices, and the net effect on the cost of change for owners is unlikely to differ if they have a car to sell as well.

From BL: As part of an early- retirement package I am being offered the chance to purchase my company car. It’s a 2008 1.6-litre petrol Nissan Qashqai. They are suggesting a valuation of €20,500 for it. There is only 20,000km on the clock. Is that a decent price? I’m planning on spending a lot more time on the road in the next few years as I’m going to be working for myself. Is this a good car for that? I still need a family car as we have two young children, plus I go fishing so need a decent boot.

I think the deal could be better. You can pick up similar Qashqais with lower mileage for about €2,500 less. Also, while the Qashqai is a good family car, I think you might consider a diesel variant if you now have to pay for fuel and motor tax. If you can take a similar sum in payment through the redundancy scheme, then for space and mileage why not consider something like a nearly new Skoda Octavia 1.9 TDI estate or the equivalent Roomster?

Send your queries to Motors Helpdesk, The Irish Times, Tara St, Dublin 2 or email motorshelp@irishtimes.com