asked the Minister for Finance if he is aware of the serious recession in the motor industry and in particular that the incidence of VAT on cars and on the labour content of car repairs is a serious hindrance to the expansion of the industry; if he is further aware that the sale of motor vehicles has been in serious decline in 1982; the steps he intends to take to reduce the incidence of VAT as it applies to the industry; and if he will make a statement on the matter.
Written Answers. - Motor Industry.
1.
I am, of course, aware of the difficulties being experienced by the motor industry in these recessionary times. However, I do not accept that the VAT rate of 18 per cent on car sales and car repairs can be regarded as a serious hindrance to the expansion of the industry. For this reason, and in view of present national economic circumstances, it would not be possible to provide VAT relief in relation to the items in question.