Massive road tax hike
6 December 2002: The biggest increase in road tax for 10 years is to be announced today by the minister for the environment, Martin Cullen TD.
The 12 per cent rise will add E30 to the tax on a 1.4-litre car, and E70 to the tax paid by drivers of 2-litre cars.
Speaking on RTE's Morning Ireland this morning, the minister defended the rise by saying he wanted to 'maintain' the investement in non-national roads, and that over the last 10 years there had only been a 12 per cent rise in motor tax in a period where total inflation was 33 per cent.
Labour's Eamonn Gilmore said it was just another 'stealth tax' from the 'real budget' and pointed out that the Government in the Budget had CUT its normal support for non-national roads and this was the way of recouping that - by 'putting yet another stealth tax on the PAYE sector'.
Cyril McHugh of the Society of the Irish Motor Industry has also criticised the rise, saying that motoring taxes are well ahead of inflation.
The RAC says it is 'deeply dismayed and disappointed' with this morning's announcement. "Motorists now also have to pay more for having their cars serviced," notes RAC Ireland's Robert Taylor. "Increasing the rate of VAT in the budget is a breach of faith with the service sector which has been expanding employment in recent years. This could lead to difficulties for a number of sectors including the motor trade and could encourage the black economy. It seems the motorist is once again getting a raw deal from the government."