What is Swappage?
The SIMI Proposal
The introduction of a €2,000 VRT refund where a 6 yr old car (or older) is traded-in against a new car (from January 2014 for a fixed time-period)
Ireland doesn’t make cars so why would it make sense to introduce Swappage?
- Exchequer Tax-take from New Car Sales has fallen from €2 Billion to €500 Million since 2007
- This Tax-take will only increase when new car sales increase
- 36,000 people working in the Motor Industry today, it used to be 50,000 in 2007
- Increases in new car sales generate big increases in employment
"Swappage could deliver a big increase in the Government Tax-take, a significant increase in jobs & could help kick-start activity in the domestic economy"
What would Swappage Cost?
- No cost for the State (like Scrappage)
- In fact Swappage would deliver a very big tax increase for the State likely to be in the region of €80 million (after deduction of VRT refunds)
- It would deliver an extra 2,200 jobs at a saving to the State of a further €50 million
- Total Exchequer benefit would be €130 million between the extra tax revenues & the additional jobs
- The Motor Industry benefit from Swappage would be an increase of 17,000 in new car sales in 2014 & a higher level of increase in used car sales & servicing due to the cycle of business generated by subsequent linked resale of trade-ins; protecting local jobs & businesses in 400 towns across the country