Motor tax could double under EU plan

MOTOR tax rates could increase by 100% under a reform of car taxation systems planned by the EU.

The European Commission has predicted that annual motor tax may increase dramatically in many EU countries, including Ireland, as it moves towards the introduction of "polluter pays" taxes and the abolition of other forms of vehicle taxation.

It estimates that the annual motor tax for a 1.4 litre car in Ireland, which costs €292 at present, could soar to €585 per annum over the next decade.