Volkswagen Group Ireland Managing Director Carla Wentzel.

Volkswagen Group Ireland is calling on the Government to extend the current VAT reduction from 23% to 21%, to be extended to the end of June (it is due to expire at the end of February) to allow the Irish car market to counteract the effects of a curtailed Quarter market in Quarter One.

Traditionally the busiest and most vital quarter for new car sales in Ireland, it accounts for around 52-57% of the total sales in any given year.

“It is essential that staff and customers alike, heed the advice of government and stay home where possible to prevent the transmission of COVID-19, which has now reached unprecedented levels,” said Volkswagen Group Ireland Managing Director Carla Wentzel.

“Limited collection and delivery of cars will continue within Government guidelines at retailers, that elect to do so, and our retailers can now do the majority of the sales process, from ordering a vehicle to finance approval remotely, but restrictions will still mean a greatly reduced market, and consequently a reduction in essential tax take from our industry.

“The continuation of the VAT reduction will go some way to incentivising new car sales beyond the traditional January rush.”