Motor tax unfair on drivers, says opposition

THE motor industry and opposition parties have described the 12% increase in motor tax as a devious measure which unfairly penalises drivers.

The Government announced the latest stealth tax two days after one of it toughest budgets, which included an increase in Vehicle Registration Tax and a 3c hike in diesel.

After the tax increase, the annual bill for an average 1.3 litre family car will rise by around €30 to €278. Road tax on a 1.6 litre car will rise €32, from €332 to €364. The owners of a two-litre car will face a 70-a-year increase in road tax, bringing it from €458 to €528. The increase would put even more pressure on inflation.