Renua proposes plan to scrap motor tax

Motor tax should be abolished and replaced with a pay-at-the-pumps charge which would ultimately save motorists and the State money, according to Renua Ireland.

The proposal will form part of the party’s pre-budget submission, which it and other opposition parties will launch this week. Fianna Fáil will propose reducing tax on savings, helping low and middle-income workers by widening the USC bands and special tax credits for the self-employed.

Renua believes the current motor tax system is archaic, inefficient, and costly to operate. It wants to replace motor taxes with a direct levy on fuel that is collected at source. This would add 3c to the price of a litre of petrol and 4c to diesel. The levy would be capped at a fair rate for hauliers and public transport licenses.