Citroen has re-introduced its ‘no VAT’ offer across its model range as it looks to halt declining sales, which are 16% down year to date.

The manufacturer last ran the offer in March 2004 and is hoping its return will increase showroom footfall and help to push sales after a difficult start to the year which has been felt across the industry.

The promotion, which runs until the end of May, also covers factory-fit options and offers savings of up to £3,900 on the top-of-the-range C8 MPV. The new C4 starts at £9,548 for the 1.4-litre VT Coupe, a saving of £2,650, while the recently revised C5 starts at less than £13,000.

Cashback offers on entry level C2 and C3 models mean the two ranges start at £5,995 and £6,995 respectively while the C3 Pluriel convertible costs £10,500 for the 1.4-litre engined version.

Selected C2 models are also available with free insurance while the Xsara Picasso is offered at £11,500 for the 1.6-litre LX. Under the incentive scheme, the top-of-the-range Picasso, the 2.0i 16v Exclusive auto comes with a saving of £2,464.

At the budget end of the MPV market, Berlingo Multispace prices are being reduced by up to £1,665 under the scheme.

Alan Favey, Citroen UK managing director, says: “Our range is now one of the most modern available, offering the type of value for money which will appeal to buyers. With these exciting new offers we hope to see a healthy swing to Citroen this May.”

The ‘no VAT’ and free insurance offers are applicable to vehicles ordered and registered by May 31, 2005. There are no current plans to extend the scheme beyond this month.