Business ETC uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Click here to find out more »
Dublin: 12 °C Sunday 26 May, 2013

Poll: Will motor tax hikes make you change/get rid of your car?

With a motor tax increase promised for a wide swathe of vehicle owners in the upcoming Budget 2012, how would that affect all you drivers out there?

Image: Pete Markham via Flickr.com

MINISTER FOR THE Environment Phil Hogan has confirmed a “restructuring” of our motor tax system as mentioned in Irish draft financial documents shown to the German parliament seen by TheJournal.ie over a week ago.

The exact details of the changes and increases won’t be revealed until Budget 2012 next Tuesday but Hogan’s comments on RTÉ’s The Week in Politics last night show that most motorists can be sure of taking a hit. The minister described the increase as an “indirect tax (that) would give people some choices in their spending”.

We want to know: if you see an increase in motor tax, would you consider changing your car/vehicle – or giving it up altogether?


Poll Results:







Read next:

Comments (116 Comments)

  • We pay tax to buy the car, tax every year to use it, tax on the fuel, a carbon tax on the fuel, tolls to drive on reasonable roads, we pay to park, we pay for a joke of a NCT, we pay fines for speed traps that are set up to make money, nothing to do with speed.
    How much more do these people want with their driven limo’s paid for by our tax.

    Reply
  • You forgot the option ‘I would change my car if I could afford to and/or could get finance, but as I can’t I’ll just have to put up with the hike as well the government knows!!’

    Reply
  • saw this comeing a few years ago,
    incentive to buy a new car bcause of low yearly tax would mean more VRT for government,
    then they realise their taking in less in tax so what do they do, RAISE IT! unfair if you ask me..
    I can barely afford to run a car as it is, and the bus is no cheaper an option where i live.

    Reply
  • Even if you decide to get rid of your car for a lower taxed one, if Tax goes up, you may not be able to as others will not want a higher tax car, so its a catch 22 situation

    Reply
  • The problem here is the government know car owners are a captive audience and for so many there is no public transport alternative. In particular all the young families who’ve been pushed out of the public transport regions with the housing boom. What it’ll mean are those on the edge will have less disposable income to spend on life’s luxuries and the retail sector will take another hit too combined with VAT hike etc. It’s one big downward spiral sadly.

    Reply
  • This was a rare example of a green measure which actually worked, despite using the carrot rather than the stick. You trade in your gas guzzler for a more fuel-efficient car, we’ll give you a nice low tax rate in return. The car buyer gains from lower tax and the planet gains from less emissions. But o no, it’s not making enough money. Time to backtrack! Which just goes to show, governments are ONLY interested in ‘green’ measures when they can make money out of them.

    Reply
    • It was a good idea to encourage more fuel efficient vehicles but not a very well thought out idea from the revenue side of things.

      Road Tax is a major income source for most of these county councils and the more fuel efficient cars on the roads and the less revenue in their coffers. In effect, the government ended up cannibalising it’s own revenue stream.

      I don’t like paying road tax and I see this as a tax on most people that are going out to work each day. The cost of travelling to work has crept up rapidly in the last 4 years. With increased costs of motoring it’s time to look into options for doing more work from home. This is not possible for everybody but if you’re in IT or an office type job then there are more options open to you for working from home a couple of days a week.

      Reply
    • I never expected anything else but for the ‘so-called’ low emissions/low tax band motortax rates to be raised eventually, but as I thought it was a cynical ploy by FF/Greens just to keep car sales (VRT) from disappearing entirely, I never thought for a minute that they’d increase those until we were in recovery. How blind I was. No matter, my 2008 1.4 litre car was not subject to the lower rate of tax anyway, & the 2006 1.9 diesel car I’m soon to get most certainly wouldn’t have either. No doubt they’ll find some way to rig it so their rich pals with brand new 3.0 & 4.0 litre Mercs & BMWs will get a bargain motor tax rates because they’ll probably peg the rate paid to the age of the car or something. Meanwhile the rest of us taxpaying plebs will be taxed off the road and onto the peasant-wagons while being patted on the head & told, “Now, just be thankful we haven’t increased income tax, be a good Paddy now, suck it up, tighten your belt & shut up!” To FG & Labour I have only this to say: “A plague on both your houses!”

      Reply
    • Dead right and a lot of the green requirements are dreamt JP for that reason!

      Reply
    • how come The Government seem to be able back track or change every thing in order to get more money off us !!!! Why cant they Lower their own F***ing wages based on their Productivity !!!!

      Reply
  • That’s it, I’m emigrating. I’m sick and tired of footing the bill for a boom I didn’t even get to take part in.

    Reply
  • Why don’t they scrap it and add it to the price of Petrol…at least those who actually use their car will pay more for it. Or would that make too much sense…

    Reply
    • I think they are adding to petrol etc too Steve

      Reply
    • Does a bear shit in the woods comes to mind Theresa.

      Reply
    • I so agree Steve. Also those who avoid paying car tax would have no choice but to pay it if it was added on to the petrol and the people who use the roads more, would pay the most. My father and I both own a 1.6, we both pay the same road tax, he however only puts up about 2,000 miles on his car a year whereas I would but up approx. 15,000 to 16,000 a year. It seems wrong that he has to pay the same amount of tax as me when I use the roads more.

      Reply
    • The motor taxation policy recognises that people in Rural Ireland have little access to public transport and are therefor more reliant on personal transport.
      Linking taxation to use does make some sense and perhaps they should expand road tolling to all motorways and major tunnels.

      Watch out for car and mileage allownce increases for TD’s and civil servants to compensate for these tax rises.

      Reply
    • Another reason for holding off adding motor tax to petrol is that would make our Northern neighbours petrol prices very attractive. Anyone in the border counties would immediately start crossing the border to fill up. At present I think we’re slightly more competitive on price but I stand to be corrected ?

      Reply
    • Wouldn’t that mean to use my Lawnmower I’d have to pay road tax. To fill up my Diesel Genny I’d have to pay a road tax? Some people need to think before speaking

      Reply
  • John 28/11/11 #

    Planned to change in the new year to a diesel and cheaper tax. Looks like I’ll be keeping my gas guzzler on the road. Is it ok to print your own tax disc?

    Reply
  • Get yourself a fully restored/modernized classic car. Costs €48 per year in tax and is NCT/DOE exempt. I’m looking at a series 3 landrover (1977), in great nick, perfect for the winter and you can get good examples of these on donedeal etc for 4 or 5 grand. Usually have a diesel engine and better brakes/suspension etc from newer makes.

    Reply
  • I feel very disillusioned about all of this. From Dublin and when living there I didnt have a car and used public transport for 14 years while I worked in various jobs. Had to get up early and get maybe 2 buses at times but at least i got there in the end. Now I am living in rural Ireland 4 miles from the nearest town and have to use my car to go most places. I have to plan my journey to town now. Make sure that I get as much out of my tank of Petrol as I can. The tax on the car is 125 for 3 months. I am penalized because I cannot afford to pay the full yearly amount in one go so I end up paying 500 a year instead of 425 because of this. That is crazy. Once you are paying your car tax, be it one payment or 4 payments a year, it should not be more expensive. Price of fuel gone through the roof and now another increase on the way – also increase for road tax….WE CANNOT AFFORD ANY MORE EXPENSES TO DRIVE IN THIS COUNTRY. !!! If everyone who wants to make a point stopped paying their motor tax starting 1st December that would surely send out a very clear message to our Government Ministers who are paying themselves huge salaries, bonuses, driving huge expensive cars which must cost a fortune of OUR money to run……they would sit up then and they would certainly take note………they cannot prosecute every driver in Ireland for not having tax can they?

    Reply
  • Another slap in the face for less well off people in rural areas, who have no public transport alternative.
    Motor tax is priced at scandandalous rate already. The roads are in shite state, you wreck your car driving to work on them. Then the Govt get even more money charging VAT on the repairs.
    There should be less tax on older vehicles, unless they are high-perfomance gas guzzlers. A basic family car should not be taxed as highly as a luxury car.
    Unfortunately for the average man or woman, fairness is an alien concept to the overpaid, over privileged party politicians who still seem to have their heads in the clouds and their snouts in the trough. A pox on them all.

    Reply
  • EM 28/11/11 #

    Just changed my car (crashed last one) and purposely went from a 1.8 to a 1.6, bringing tax down from over €600 to €445. In hindsight I wished I had gone for something smaller again.

    Reply
  • had to sell car cause of tax hikes last time round. using the bus – rarely arrives on time, if fuel goes up so will the bus fares, this bu!!sh!t government is as useless as the last one and only reinforces the fact that this country is well and truely f**ked. Used to be a time you would feel it cant get worse………then we go and have a 2-day budget to make things better! Politicians me hole………………

    Reply
  • i can’t afford an expensive car to get cheap road tax.

    Reply
  • My 00 Reg is in the garage this past 3weeks nearly got a new car after everything is done costing nearly €1000 to repair . I love my old banger but it’s a 2ltr and was over €600 a year to tax. I wish I knew about this tax hike before the repairs began would of sold it for scrap instead! And can anyone tell me how is diesel more expensive than petrol now!! Another reason to change.

    Reply
  • I simply COULDN’T give up my car. Myself and my son both use it. Putting the tax on petrol will just stop people driving as much…so every option is a catch 22. So the government put if on every car so you cant escape..I agree with Paul …Social unrest is on the way…

    Reply
  • I just sold my 1.4 petrol to move to a diesel for the obvious fuel economy benefits, so I’m between cars right now, but the smallest diesel engine in the car I want is 1.9. I’m switching to diesel due to the commute I have to make from Trim to Dublin each day. There are of course buses but the bus DUMPS passengers on the hard shoulder of the N3, without so much as a footpath to walk to the Old Navan Road. This is also a couple of miles from the business park where I work so that’s no good as I already get up at 6.30 for an 8am start in work. I refuse to get up earlier to use Bus Eireann & then walk to work from the ‘dump off point’ on the side of the N3. I have little choice but to drive. Car pooling has recently reduced my costs but if the tax on the car I’m buying increases from the €614 per year current rate then I probably shouldn’t have bothered selling my 1.4. Any savings in terms of fuel economy will take a hit now. Roll on the backlash of the people, there’s got to be an end to the apathy.

    Reply
  • well I guess I can forget about selling my 03 ‘massive’ 2.0 car and getting something smaller like I’ve been trying to do all summer. Pity my house in the middle of nowhere without public transport to get to work it might be have been a cheaper option.

    Reply
  • You forgot the option – I already changed my car in the scrappage scheme to the lowest tax rate – and am now annoyed they are going to put the fecking thing up!!

    Reply
  • We’ll soon see lots more people switching over to motorbikes & scooters, especially in the urban areas. Car ownership is quickly becoming an unaffordable ‘luxury’

    Reply
  • Quote: “No penalty paying for 3 or 6 months if done online.”

    And that’s another way the mean bastards discriminate against the less well off. If you can’t find the whole years lump in one go, why should you be made to pay more if you renew every three or six months.
    It’s pure and simple robbery.

    Reply
  • rfeer 28/11/11 #

    Have a small car that’s 6 yrs old, can’t afford to change it. The public transport in my area is no use as I would be 2 hours late for work each day.
    So go ahead Gov, keep cutting wages, and piling on taxes because you can’t think of anything else to do. Gov will inevitably force people in low paid jobs to go on dole!

    Reply
  • The Minister is obviously indifferent to the impact of road tax increases on pricing in the secondhand market. The usual well-thought out policies in action…

    Reply
  • The problem is we are leaderless. There is no one out there that is standing up for the people. It’s all about deficits and protecting the euro. People simply can’t afford all these cuts and taxes. It will simply drive everything underground into the black economy. The cuts have stopped working, if they ever worked. I hope the gov has a plan and it’s one to protect the people.

    Reply
    • Motor tax should be 3 levels. Say 400 for up to a 1.5 or low co2 car and 600 for 1.5-2.5 and mid co2 and 2.5+ and high co2 cars pay 1k.
      Cars over 20 years old drop to 400 for the year. No penalty paying for 3 or 6 months if done online.
      If you want to take your car off the road you have to fill out a form like the SORN (Statutory Off Road Notification) they have in the uk.

      Reply
  • I urge young people to read THE IRISH ANSWER by TONY GRAY 1966. Only then you will realise how the real people of Ireland in the 30s 40s 50s 60s lived. Make no mistake this is where we are right now. I have lived through a lot of these hard times. Shame on goverments drip feeding and playing with peoples livihoods.I am so enraged that they dont have the guts to stand up and tell the people the real truth. We are sold out by the greed me fein elite of this world.

    Reply
  • Oh hooray!!!!! A possible 8% reduction in vehicle ownership!!! So I pay a bit more in tax (sure it’s only money) and I have nearly 10% less congestion to put up with when spinning around in my Maserati Grancabrio. Oh happy days. :)

    Reply
  • fcuk your Mitsubishi i have a horse outside ……… and fcuk your subaru ……. i have have a horse outside……… and fcuk this rotten government i have a horse outside. if your looking for a ride i have a horse outside…

    Reply
  • Voxpop on Morning Ireland. Man who’d recently bought a Merc said he’d gone out of his way to get a car with low road tax rate. Did he mean by this he had spent thousands more than he needed to, in order to save a few quid a year on road tax? Does this reflect an attitude some have that they will go to great lengths to avoid paying tax, even at their own expense?

    Reply
  • I need my car. I cannot afford to change it for a smaller cheaper car ..like lots of other people and I HATE small cars. But like thousands of others I hate paying for the mistakes of the government and they are crucifying the tax payer every way we turn…

    Soon we will all have emigrated and there wont be anyone left in the country …satisfied then politicians..
    Anyway the Euro zone is about to go up in smoke ..I hope we have the punts printed..

    Reply
  • What about the people who use their car for their job. What choice do we have……..oh yeah NONE!!!!!!

    Reply
  • I don’t actually have a car but I can see how road tax is essential to the running of the country, I’m not dumb enough to think its actually spent on our roads, Christ no, it’s used to pay the Dail bar bill.

    Reply
  • As a taxi driver, the current rate of tax doesn’t bother me at all, €84 yearly. Now I’m sure all of you will hate me for that, but my current spend on diesel a week is close to €150 a week. Any further increases in fuel will make it harder for me to put as much fuel in.

    The problem with this government is they want to increase the price of everything, regardless of how much an nesseccity it is.

    The people can only survive for much longer with less and less money in their pockets to buy the things they really need.

    Reply
    • Taxis and haulage contractors can be accommodated under such a scheme through tax breaks, if you’re self assessed you should be keeping all your receipts and putting them through the books anyway, no?

      Reply
  • Aine 28/11/11 #

    I clicked thumps down!

    Reply
    • Care to elaborate why you favor working for the government for half a year? If you really like it, I can suggest some really nice countries when you can work for the govt all year round.

      Reply
    • Aine 28/11/11 #

      I disagree with your point its not theft we’ve always paid taxes to provide for services for us a society as a whole! its a shame we’re facing more taxes to pay back national debt! but I for one never had an issue with taxing my income solely based on the fact that I and others could avail of services provided for by the state such as education, policing, medical services etc We can all admit that these services are necessary

      Reply
    • Ok, I will rephrase it. All tax not going towards services is theft. Now let me break the bad news. An average OECD state spends about 15% of GDP on services and takes in about 44% of GDP in tax. So roughly 1/3 of tax take goes on services and only 2/3 is theft. So when one has to pay a couple of grand every year in road tax and petrol duties (which BTW already contribute towards 75% of price you pay at the pump – damn those Shell and BP big oil bastards) for the privilege of being able to ferry the family around in something bigger than a 120g/kmCO2 diesel powered shopping trolley – that my dear is theft.

      Reply
    • Comrade Jo ordered a new Wartburg from the local car co-op. Sealing the deal, the salesperson said it would be ready for collection in 10 years. What time would comrade Jo like to collect it? Says comrade Jo, “better make the afternoon, the plumber’s coming in the morning”…

      Reply
  • No but maybe rid of the government

    Reply
  • Journies, can I suggest running a poll to gauge the level of support for a consumption based taxation system as opposed to what we have now?

    One option which would well negate a spike in fuel prices would be to tie some of the revenue requirement on to the NCT, which every motorist has to cough up bi annually anyway-those with new cars can pay say, a hundred when they purchase as opposed to putting €50 on to the NCT rate, the level that would need to be tacked on to the cost per litre of fuel would thus be far lower, and would dissuade those who don’t live within a couple of minutes of the border from crossing over every time they need a fill.

    Reply
  • just going to do what I do every year only pay for 3 months at the start and 3 months at the of the year ain’t no one stopping me from driving my baby

    Reply
  • The €100 flat tax is a blunt and unfair implement but I for one will be paying it in the anticipation, and expectation, of a fairer system being developed over time.

    The problem here stems from the abolition of domestic rates by Fianna Fáil in 1977 in a cynical vote-getting exercise; the subsequent about-turn by the Rainbow coalition on the reintroduction of water charges in 1996; and the failure of the Fianna Fáil led governments since 1997 to do anything about it.

    As a result our Local Authorities are seriously underfunded and have relied on road taxes, commercial rates and development contributions for funding. The collapse in the construction industry has hit the last of these sources of funding hard and there is increasing pressure on local authorities to reduce commercial rates to help businesses who are struggling to survive.

    In this context the re-introduction of domestic rates seems like a reasonable solution but not a flat charge paid to the exchequer as is now proposed.

    Ideally rates would be payable to the Local Authority, not central government, and vary from authority to authority depending on the services provided, with a clear breakdown of what the rates are going towards (as is the case currently with development contributions). Local money can be allocated most effectively at a local level.

    Rates would be calculated based on site value and, where appropriate, by consumption e.g water usage thereby avoiding a situation where someone on a private water scheme is being asked to fund the public system or where someone with a mansion in Kinsealy is paying the same amount as someone with a 2-bed terraced house in East Wall.

    To those who would oppose this tax outright, remember that there can only the alternative is poorer services, higher cuts in expenditure or higher taxes elsewhere. Personally I’d prefer a fair tax with a clear return for the money spent.

    Reply
  • Sorry wrong Poll!!

    Reply
  • ahh people who have pass travel go use train and bus save your pocket.

    Reply
  • Apart from the price of car tax or petrol going up…what about the damage to the environment? There are a lot of people on our roads around Dublin that don’t really need to be driving so as a committed cyclist i’d have no sympathy for them. I cycle everywhere I need to 6/7 days a week and it doesn’t cost me a penny, doesn’t damage the environment, it’s good for my health, keeps me in shape and gets me where I want to go on time…and i’m not stressing out in traffic. BIKES RULE!

    Reply
  • The bottom line is this: the Government need to raise lots more money. Anything that isn’t PAYE related is better for the normal working man and woman.

    Reply
  • Dont own a car! Dont want one! We need cycle lanes, more trams and more trains! Generation Y’er see cars as excessive and unnecessary, Id count myself as one of those!

    Reply
    • Tell that to anyone outside of a city area in Ireland. Even in so called cities like Waterford public transport is terrible.

      Reply
    • I agree with you on the cycle lanes, but public transport isn’t always an option. What about people with children? You can’t bring a week’s worth of Tesco bags home balanced on your handle bars with the kids hanging off the back. Generation Y will give birth to Generation Z and will eventually have to buy cars. It’s inevitable :)

      Reply
    • There is gonna be 10 billion people in the world in a 20 years or so! Dealing with the populations explosion will be the biggest challenge of our generation. You want a house with 2 cars parked so you can drive to the super market to buy a trolley full of food half of which you are gonna throw out! Its simply not sustainable. The environmental impact of car is far greater the just the exhaust fumes the carbon footprint is massive. We’re also relying on cheap labour from the east to keep us in a life of luxury! Look at the sate that this country and the rest of the western world is in after years of excess and throw away culture. There are a la carte socialist camping on the streets cus the doll has been cut. The reality is the the 99% are more like the 20% on a global scale. I’m gone off topic but the point is, times are changing!

      Reply
    • Times are a changing alright, the biggest growth in car ownership is in the place you mention; the East.

      Reply
    • Try getting weeks groceries from the shop with two small kids alongside on a f***** train. You won’t be talking through your self-righteous backside after such a thrilling experience.

      Reply
    • I get 3 weeks shopping in one go and I take the bus. I don’t have kids etc but I know I could do a weeks shopping. Just think of using wheels on a bag e.g. a suitcase or even a backpack. You think a lot more about what you will buy (so you save money),and you get some exercise. You also save on parking fees. You could go once and a while in a car with a friend to bulk up on things that last for months e.g. tinned food. I understand that not everyone can do this especially in the countryside (where I live) but there are loads of people that can. There are also delivery services from tesco in a lot of areas. If you live in a city you could also hire a car when you need it – In the end it could work out cheaper than paying tax.

      Reply
    • Fieldo 29/11/11 #

      Tesco and Superquinn do home deliveries you know. You need never leave the house.

      Reply
    • P Wurple 29/11/11 #

      Hope Neal remembers his comments when he is balancing his newborn baby on his bike in the snow. Hilarious naivety.

      Reply
    • Glenn, due respect but you have no idea what you’re talking about. Hire a car to go shopping? And rent-a-car is next door? You have no idea what’s it like to be in early 40′s with a responsible job and a young family, wife working and because I am not native I have zero family support. You have no f***** idea what it’s like to wake up at 6am on a Saturday morning to feed a 2 year old cornflakes. Make breakfast, make snack, move the lawn, take out the bouncy castle, walk the kids, fix the leak, paint the shed, take calls on Sunday morning from foreign clients who operate on a different week. And you are suggesting I should lose two hours of my valuable time to go to the rent-a-car agency and rent a car for weekly shopping so that some sanctimonious greenie-chop can feel better about himself for making me do so by means of punitive taxation? Listen mate, I ain’t that stupid. I saw this coming so I moved back to the Middle East now filling up my 80l tank for a fiver and a half and no one telling me I should do this or that to avoid stupid taxes on hot air.

      Reply
  • All tax is theft!

    Reply
    • Will the commie who clicked thumbs down on my entry above make him/herself known?

      Reply
    • No, SOME tax is theft. It is theft if it does not take into account a persons means to pay, if it is excessive, disproportianate or causes hardship.
      At the point of this reply, Dom, eleven commies seem to have given you the ‘thumbs down’!
      Not including this commie.
      It is not beyond reason to suppose that, had we been a communist state, we would not be quite as deeply in the shite as we are at present. Fianna Failure and Fine Mess have excelled themselves.
      Certainly the ruling parties appear to have magically reversed the communist doctrine, “To each according to his needs, from each according to his abilities” unless we misunderstand the definition of both “needs” and “abilities”

      Reply
    • People don’t like the truth spoken in a provocative fashion. Few posts above I wrote against taxes in a different form and got 100% thumbs up. People are hypocritical and like to believe they are good (and this is the narrative in the last 50 years – taxes are good) but in fact majority cringes when they get the pay slip and see 30-40% taken. Except of course those with productivity in 0-10% bracket who just adore having their existence subsidized through the efforts of others. And who knows, perhaps most of those who clicked thumbs down are commies.

      And another thing, Graham, it is quite easy to be an armchair philosopher. You have no idea what it is like to wait 24 months to have your Wartburg (google it up, I am sure you have no idea what it is) delivered, get up at 5 to buy brown (cheaper) bread or having to go to black market to change your salary into Deutschmarks and than sell 50 Deutschmarks every week so as to avoid the 1000% inflation. Mate, you’re spoiled you have no idea what communism is and bad it got.

      Reply
    • The motoring correspondent is also a fiscal expert…

      Reply
    • Paraphrasing Karl Marx’ good friend PJ Proudhon: “all property is theft”…

      Reply
  • Your racist tirade has nothing to do with the discussion on Motor Tax.

    Reply

Add New Comment