CompleteCar

Motor tax rates set to rise

Hike in tax rates likely to penalise cars with larger engines, regardless of emissions.

With the state coffers running low and bondholders knocking on the door looking for their money the Government is said to be planning to hit oppressed motorists again with a 'realignment' of the motor tax rates.

With ninety per cent of all new cars bought since 2008 falling into tax bands A, B and C - which cost a maximum of €330 per year - Finance Minister Michael Noonan and Environment Minister Phil Hogan have agreed that a complete overhaul of the system that is required to stem the flow in relation to tax revenues.

One suggestion is for motor tax to be based on a combination of emissions and engine size, a move that would spell bad news for owners of everything from mid-sized family cars to luxury vehicles. These types of cars, some of which currently qualify for the lowest tax band, invariably have larger engines and any system that uses both emissions and engine capacity as a basis is likely to hit these cars hard.

According to the Irish Times only drivers of smaller, super eco-friendly cars will escape the worst.

On the back of increases of up to 54 per cent in January this news is likely to rankle with drivers who purchased 'green' cars with the promise of low road tax.

Written by
Published on March 6, 2012