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FTA Ireland calls for clarity on truck taxation

Jan 06, 2016
Freight Transport Association Ireland (FTAI) is calling on the government to clarify details about articulated vehicle taxation following a Court of Appeal judgement in October that a trailer is not a separate taxable unit.

Hundreds of trucks are due to be re-taxed before the new rates announced in the Budget come into effect on 1 January 2016, yet the Department of the Environment, Community and Local Government has not issued instructions to operators on how to proceed.

Neil McDonnell, General Manager of FTAI said, “This is a ridiculous situation where the Court of Appeal has made a decision but the government is dragging its feet over issuing information. Minister Kelly needs to put an immediate end to the confusion and advise operators what to do.”

Last year, FTAI supported member company Perennial Freight in its appeal against prosecution for ‘undertaxation’ of an articulated truck. The case was heard in the Court of Appeal in June and a decision was delivered on 21 October. The court decided that only the tractor unit of an articulated vehicle was taxable, overturning the Director of Public Prosecution’s interpretation of the law that the trailer was also a taxable unit.

Mr McDonnell said, “It was very obvious from the line of questioning taken by the judges that they had difficulty with the DPP’s view of a trailer as a taxable vehicle. On its own, a trailer is not a mechanically propelled vehicle. We kept government informed of progress on this issue and now a decision has been made by the court, we need some clarity for operators.”

Photo:  Articulated vehicle taxation: the tractor is subject to tax, but the trailer isn't.

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