NEW car sales jumped by 32 per cent last year to 115,102, according to the Society of the Irish Motor Industry, which has called for a reduction in Vehicle Registration Tax to 20 per cent in the Budget.

"A reduction of VRT to 20 per cent and no increase in fuel taxes in the next Budget would maintain Government revenue from motor taxation at the current unprecedented level," according to SIMI chief executive Mr Cyril McHugh. Motorists contributed some £1.76 billion in motor related taxes in 1996, he argued, [calling on the Government to bring Irish car prices closer to those in other European states.

The SIMI figure for new passenger car sales in 1996 compared with sales of 86,957 new passenger cars in 1995. Last month alone, some 925 new cars were sold, a 75 per cent increase on sales in December 1995.

Sales of light commercial vehicles rose by 17 per cent to 15,741 in 1996 while sales of heavy commercial vehicles were 18 per cent ahead at 3,449.

The motor industry was a considerable contributor to the Exchequer in 1996, according to Mr McHugh. SIMI calculated the total Government revenue from new car sales at £508 million.