Irish cars among priciest in EU
(30 July 2007)

Car prices in Ireland are among the most expensive in the European Union (EU), the Irish Examiner reports.

According to figures released by the EU, car buyers in Ireland are hit with a double whammy of extra costs.

Not only is the average pre-tax price of a vehicle more expensive in the country, but extra Government Vehicle Registration Tax and VAT charges hike the cost even further.

Calculations show that around 34 per cent of the car price tag can be composed of taxation alone.

A German-made VW Polo, for example, costs about €9,971 (£6,719) in Ireland before tax, but with the added cost, a consumer can expect to pay closer to €15,214 (£10,252).

The same vehicle can be purchased for €7,582 (£5,109) before tax and retails at €9,099 (£6,131) in EU new member state Bulgaria.

The Irish motor trade has responded by calling on Ireland's finance minister Brian Cowen to look again at the country's system of taxing cars.