Car buyers in Northern Ireland could face higher road tax and reduced vehicle choice from next year as a result of post-Brexit trade arrangements, Stormont’s economy committee has heard.
The BBC reports that major dealerships, including Charles Hurst, Agnews and the Donnelly Group, warned lawmakers of significant disruption to the sector, which employs around 17,500 people across the region.
From January 2026, only new cars with EU type approval will be eligible for registration in Northern Ireland, effectively barring vehicles that are solely approved under Great Britain standards. The new rules will not apply to used vehicles.
Speaking at the committee hearing, Dave Sheeran of the Donnelly Group said the move would leave Northern Ireland consumers facing “a restricted offering, restricted price list and potentially higher taxation.”
“Not everything being offered in GB will be able to be sold in Northern Ireland because of a divergence in regulations with the EU,” he explained, calling the situation “an unintended pain of Brexit.”
He warned that this could result in buyers in Northern Ireland paying more road tax than their counterparts in Great Britain, particularly in the case of plug-in hybrid models, which will be subject to different emissions regulations.
“Somebody buying a car in Belfast will face a higher tax than someone buying the same new car in Birmingham,” Sheeran said.
Jeff McCartney of Charles Hurst echoed the concerns, saying the changes would create major challenges for both consumers and dealers.
“The irony is customers will be able to go to GB and buy a new car, but dealers in Northern Ireland will no longer be able to source the vehicles for them,” he said.
He urged Stormont lawmakers to support calls for the UK government to allow Northern Ireland dealers continued access to GB type-approved new vehicles after the January 2026 deadline.