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.

“Transport will become even more expensive for motorists and small businesses. We’re now looking at an inflation rate of up to 6% next year, three times the European rate,” said Transport spokesperson Denis Naughton.

Motorists are now paying €4.2 billion annually in taxes, according to the Society of the Irish Motor Industry.

“Motorists got off lightly on petrol prices in the Budget but this is the sting in the tail,” said SIMI chief executive Cyril McHugh.

He disputed Environment Minister Martin Cullen’s claim that motor taxes had not kept pace with inflation. “There’s no law that says motor tax has to be linked to inflation. And if you look over the last three years, motor tax has now increased by 18%. That’s more than inflation,” he said.

Mr Cullen defended the move, claiming the 12% increase, which comes into effect in January, will fund the building of non-national roads.

However, Automobile Association spokesperson Conor Faughnan described it as ‘infuriating.’ “It wouldn’t annoy us so much if we knew motorists were getting value for money. But the Government has wasted money with no cost controls on road building and now they’ve come back to motorists for more,” he said.