Hundreds of Donegal people are in line for VRT refunds after a landmark ruling in a European Court yesterday.
Ireland has been found to be in breach of EU law by charging the full vehicle registration tax (VRT) on vehicles that enter the State on a temporary basis.
The ruling was made by the European Court of Justice yesterday and will have huge implications in Donegal, where vehicles entering from Northern Ireland are routinely prosecuted for not paying VRT.
Ireland currently charges the full rate on all imported vehicles, even when they are used on a temporary basis.
Hundreds of vehicles have been seized at customs checkpoints in Donegal, but a large portion of those were not illegal. Those people and others who were sanctioned by customs officers with monetary fines are now expected to seek compensation from the State.
“This is a major victory and I don’t think the Government have a choice now but to abolish VRT,” Buncrana’s Ryan Stewart, a long-time VRT campaigner said.
“There has to be a process now to compensate those who have been affected. The State has to put a mechanism in place.
“This has proved what I have been saying for quite a while.
“This will cost the State hundreds of millons of euro. The Government has been busy saying about how Europe has been telling them that they have got to implement water charges, but there is selective Europeanism going on here because Europe has been saying that the VRT system is illegal.
“The State have been using tax payers money, wasting our money, taxing us illegally.
“The Government can’t tax you if the vehicle is only for temporary use. There are so many different scenarios that effects: You might have had a car on hire purchase or may have borrowed a relative’s car for a perior of time.”
Independent MEP Marian Harkin says that she believes the judgment will ensure a fairer system in border regions like Donegal.
She said: “The core issue here is that Ireland will no longer be able to insist on the full payment of VRT when a vehicle from abroad is being used in the State on a temporary basis.
“This is a very significant change in how we apply our laws, and will ensure a fairer regime for citizens, particularly those living along the Border.
“It is also worth noting that the case in question involved vehicles that were leased or rented for a fixed period but the court took a wider view.
“It is quite clear that this will represent a very significant change in how we implement and police our legislation in regard to vehicles from abroad being leased in the State on a temporary basis.”
