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25.08.2010
ITIA estimates cost on planned tyre tax
The Irish Tyre Industry Association (ITIA) has estimated that a government plan to introduce an additional tax on tyre sales could cost motorists more than €22 million annually.
The ITIA believes that Environment Minister, John Gormley is planning to introduce a Producer Responsibility Initiative (PRI) to replace the two tyre waste management compliance schemes.
The ITIA has described the plan “a stealth-tax disguised as a green tax, and one that can actually impact on road safety.”
The ITIA says that just over three million tyres were imported into Ireland in 2009, with disposal costs running at just over €8 million.
Under a PRI the ITIA has estimated that disposal costs (based on 2009 imports) would rocket to over €21 million, representing an increase of more than €13 million annually.
“At a time when everyone is under greater financial pressure, plans by Minister Gormley to further increase tax on tyres will inevitably lead to even higher prices for buyers, and that could lead to delays by drivers in replacing tyres that have reached the minimum tread depth for road safety”, commented ITIA President Dave Naughton.
“Tyre dealers across the country are seeing at first hand how reluctant motorists are to change their tyres, and how sensitive a factor is price”, he added.
“In this environment a further tax on tyres would be seriously misguided and can be considered as a tax on safety.”
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