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RMIF warns on VAT threat MoT

Government plans to increase MoT test intervals could be followed by the levying of VAT on the MoT fee, warns the Retail Motor Industry Federation (RMIF).

At present the statutory nature of the MoT fee means that motorists do not have to pay VAT on the test. If statutory status was removed, the cost to the motorist would increase.

Ray Holloway, RMIF director of independent membership comments: “There are suspicions that the Government may be considering tampering with the statutory status of the MoT test. If this were removed, VAT would then apply, bringing with it a whole new revenue stream for the national coffers.”

If the next review of the MoT fee resulted in these changes, VAT would be applied from April 2008 onwards.

Holloway adds: “We will be keeping a watchful eye on developments and will actively campaign against anything that would downgrade the status of the test or threaten the viability of thousands of garages.”

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