The big loses on the motor tax front are going to be those with low emission vehicles because it looks certain that environmental minister Phil Hogan wants to scrap the huge advantage these have over older cars.
At present it looks like the state will only realise about half of the €500 million it had hoped to earn from the new property tax and motorists are in the firing line to bridge part or that entire shortfall.
From an environmental point of view the reduction in tax on low emission vehicles made sense, but at a cost. A smaller motor tax yield!
Last year Ireland took in €1.1 billion in motor tax. Sources say all the indications now are that the government wants to increase that by a further €300 million next year.
Don’t say you have not been warned.
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