Car tax increase - Sneak tax hike shows true deceit

IT HAS become characteristic of the Fianna Fáil — Progressive Democrats coalition that honesty and transparency will be sacrificed in the interests of their own political expediency.

The downright deceitful, three-card-trick tactics employed in their election campaign, and exposed almost as soon as they were returned to power by a series of devastating cutbacks, was mirrored once again in the manner in which the latest tax was literally dumped on people.

Instead of being announced in the Budget, the twelve per cent increase in motor tax was by revealed twenty four hours later in a leak to a newspaper to the completely unsuspecting motoring public.

Two years ago, under similar circumstances, an increase in motor tax was announced by the then Environment Minister, Noel Dempsey, also separate from the Budget.

This one came in the aftermath of a three cent per litre increase in the price of diesel and a rise in Vehicle Registration Tax (VRT) for two-litre engine cars in the Budget on Wednesday.

This latest back door tax was agreed by the Cabinet on Tuesday, but the Minister for Finance, Charlie McCreevy, misled the country by making no reference to it in his Budget speech.

Instead, the Minister for the Environment, Martin Cullen, ambushed the already over-burdened motorist, whose relief at petrol escaping unscathed was shattered by the totally unexpected increase in motor tax.

Now, with the underhanded delivery of this tax, motorists are faced with anything from an extra €15 to €70 increase, depending on the size of the engine. This on top of higher charges for servicing and repairs which will inevitably follow upon the hike in the VAT rate.

In the broader sense, it will also bring about hidden increases to a wider consumer band because the higher motor tax rate will be applied to commercial vehicles, resulting in higher costs to businesses which no doubt will be passed on.

It is only the utterly naive who would accept a Government statement that the higher tax will benefit road users through improving the country’s non-national road network.

Indeed, because of the Government’s cavalier attitude it would be naive to imagine that no other cutbacks, adjustments or stealth taxes will be imposed.

Advising the Cabinet is the so-called committee of Three Wise Men whose propensity seems to be the imposition of higher charges, irrespective of the ability to pay of those whom they are directed at.

They have suggested that college registration fees should be increased to €1,000, which would add an intolerable strain to students and their families.

Given that now the various departments can announce their own cutbacks or increases at will, as witnessed by the motor tax, the country could be subjected to another series of “adjustments” on the drip system.

Because funding to local authorities has been seriously cut back, it is inevitable that they will be forced to seek higher service charges for water, refuse and rates.

They will certainly have to find money to accommodate pay awards under the benchmarking system, which could potentially affect a whole range of services.