News » Irish Road Haulage Association appeal to the Government to reduce tax on Heavy Goods Vehicles 2015-07-25

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1st October, Dublin: Eoin Gavin, President of the Irish Road Haulage Association (IRHA), the national representative body of the licenced road haulage industry in the Republic of Ireland, today appealed to the Minister for Finance to consider a proposal to reduce Road Tax on HGVs.  Mr. Gavin emphasised the damage the high Road Tax rate is doing to the sector in Ireland.  The Road Tax on a HGV in Ireland is €4,000.

The IRHA‘s initial budget proposal was to lower the Motor Tax on HGVs and pay for this reduction by charging foreign hauliers.  The UK initiated a similar policy from April 2014.  As a result many Irish hauliers currently pay £10 per day in order to utilise UK and Northern Ireland roads.  Out of state hauliers currently pay motor tax charges up to 80% less (in some cases) than hauliers in the Republic.  With the delay in being able to use the eurovignette (road user charge) to raise additional revenues, the IRHA has amended its original proposal to seek immediate relief from the onerous Road Tax charges levied on Irish Hauliers.

Eoin Gavin said: “We have no choice now but to bring the Road Tax on HGVs in the Republic of Ireland in line with our competitors.  We cannot allow the differential to remain as it puts Irish hauliers at a huge disadvantage when competing for work against out of State operators.  As with all IRHA proposals we have prepared our calculations showing how the government can meet our needs without any loss to the exchequer.  It will also facilitate the charging of foreign hauliers in the near future.  Most importantly, it will level the playing field with our competitors and protect Irish jobs”.

 The IRHA estimate that there are 50,000 jobs in the Irish haulage industry.  It is concerned that if there is no relief forthcoming for the sector in the Budget, there will be a considerable amount of operators who will ‘reflag’ to other jurisdictions where operating costs are more favourable and thereby provide for their business survival.

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