Car tax cost may surpass €500 per annum

The cost of taxing the family car could soon top €500 a year.

Reports have surfaced this morning that motor tax on the average family vehicle will rise by €36 in tomorrow's budget - meaning the annual cost will climb above €500 for the first time ever.

Even people who drive eco-friendly cars with the lowest emissions will be forced to dig deeper - their motor tax is expected to be hiked by at least €40 per year.

However, motor tax bills for green drivers will still be lower overall as an incentive for people to switch.

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