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Motor industry disappointed at no deferment of showroom tax and scrappage deadline

The RMIF has welcomed several measures in the Pre-Budget Report however said it is "disappointed" with inaction to extend scrappage and defer the first year VED tax.

Sur Robinson, RMIF director, said: "The RMI is disappointed that there has been no extension announced to the car scrappage scheme. The current scheme is self-financing and has stimulated the new car market.

"By 29 November, the Department for Business Innovation and Skills (BIS) had received notification of 282,898 orders for new vehicles under the scrappage scheme.

"The industry would have welcomed a further extension to off-set some of the negative market forces that could occur in 2010, particularly with the rise in VAT rate."

She added: "The motor industry has serious concerns regarding the impact on consumers that an introduction of first year registration fee for new vehicles would cause that was announced in the budget, April 2009.

"This introduction will lead to increased costs to the public of buying a vehicle and will directly stifle demand during a time of recovery for the automotive sector.

"We would strongly urge the Government to review the introduction of this tax."

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