# Huge hike in road tax as motor cash dries up.



## Frank (5 Mar 2012)

http://www.independent.ie/national-news/huge-hike-in-road-tax-as-motor-cash-dries-up-3039261.html 

This is a disgrace, we can't allow the gov to look at road tax alone as an excuse to screw us further.

On the so called bigger cars with bigger engines there is already a massive tax take.

The bigger the more expensive cars attracts more VRT + VAT
They will generally use more fuel the ultimate tax take 
Servicing will be more expensive tyres parts etc. more vat 

To say that a bmw 520D driver is paying less tax than a Yaris driver is totally disingenuous.


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## callybags (5 Mar 2012)

It was always going to be thus.

In my opinion anyone who bought a 2008 or newer car on the basis of the low tax rate was naive in the extreme.

Once the government see the figures and the drop in the total take from motor tax there is only one inevitable result.


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## Ceist Beag (5 Mar 2012)

Well we did tell you this would happen Frank! Note I'm not saying I agree with motor tax, personally I'd much rather more tax on petrol/diesel with a standard (very low) tax across the board on all cars, much as they have in Australia.


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## Frank (5 Mar 2012)

The motorist has always been a cash cow.

Tax rates were finally reasonable not low.

The car is tax on tax on tax on tax.

Fresh air tax will be next with the apathy of irish public.


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## thedaras (5 Mar 2012)

Thats interesting,In that those who bought cars based on a low tax,may now see a massive increase in the payments,and also devaluation in their cars.

So what could happen is that they cant afford the hike in tax and they will probably have a big car loan,which may not be as affordable due to the hike,then if they try to sell the car it is worth a hell of a lot less than what they paid..

Apply that scenario to mortgages and look what happened!
Really interesting ...


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## roker (5 Mar 2012)

A car is an essential part of life if you live outside of the towns and cities, many small towns and villages do not have public transport.


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## dockingtrade (5 Mar 2012)

I remenber at the time thinking this can be reversed in the morning. Its like the broadcasting license instead of  TV license. Whats going to happen if we get to a stage where there is significant use of alternative fuels or use of electric cars do you think the govt are goin to take the hit on excise duty.


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## micmclo (6 Mar 2012)

Damn Green Party 

Oh wait, it's not them this time


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## terrontress (6 Mar 2012)

Frank said:


> Fresh air tax will be next with the apathy of irish public.


 

Well breathing out creates CO2, which is already taxed if your car does it so we might not be too long from the day we see tax on breathing.

The existing system was a nonsense. A petrol car with a higher CO2 rating but which does 100 miles in a week is charged multiples of a diesel which is owned by a rep and does 1000 miles, all in the name of CO2.

I am not even sure what the justification of these taxes are any more. Is motor tax just a way to collect as much money as possible, is it to contribute toward the road network, is it to punish polluting vehicles?

Ceist Beag, if the motor tax were to be placed on fuel and a standard tax placed on all cars, once people had got used to that, the standard tax would start to increase until we're paying €2.05 a litre in fuel, €1,000 per year in motor tax, anywhere up to 35% of OMSP in VRT, VAT on new cars, toll roads, on street parking, insurance premium tax, tax on our credit / debit cards to buy petrol with.

Actually, that doesn't sound too far different to what we get at present.


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## cork (6 Mar 2012)

Why cannot this government tackle the amount of local government?
Why can't they tackle declarations of non-use?

This government lacks the bottle.


They think stelth taxes is the way to go.


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## werner (6 Mar 2012)

cork said:


> Why cannot this government tackle the amount of local government?
> Why can't they tackle declarations of non-use?
> 
> This government lacks the bottle.
> ...


 
And they have 30+ motor tax offices all around the country, it has to be the most expensive and inefficient way to collect these taxes

Another point, there already hase been a huge hike in motor tax, my nearest and dearest (along with thousands of others) has had her tax increase by approx €50 quid on a modest mazda 2 in the last budget!

More stealth taxes anyone? There is demonstrably zero difference between FG & Labour and FF & Greens policies


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## Shawady (6 Mar 2012)

I thought I did well to get petrol to today at €1.59 a litre. Just shows how bad things have become.


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## cork (6 Mar 2012)

Increasing the vat rate on fuel was a disgrace.

They could have staggered this increase.

 30+ motor tax offices all around the country - wasteful.

But targeting waste seems beyonf this govt.


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## Guest125 (6 Mar 2012)

Oh well. It might add some value to my 07 Octavia diesel which is on the old cc based system (600+).


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## gianni (6 Mar 2012)

Shawady said:


> I thought I did well to get petrol to today at €1.59 a litre. Just shows how bad things have become.



It could be worse...


         March 6,   2012       
Italy   €1.81       
Netherlands   €1.80 
      Denmark   €1.80       
Greece   €1.75       
Belgium   €1.70       
Portugal   €1.69       
Sweden   €1.69       
United   Kingdom   €1.66       
France   €1.66 
      Germany   €1.65       
Finland   €1.64       
Ireland   €1.60       
Slovakia   €1.53       
Hungary   €1.49       
Czech   Republic   €1.46       
Malta   €1.45       
Slovenia   €1.44       
Spain   €1.43       
Austria   €1.42 
      Latvia   €1.40       
Luxembourg   €1.39       
Lithuania   €1.38       
Poland   €1.37 
      Estonia   €1.34       
Cyprus   €1.32       
Bulgaria   €1.31       
Romania   €1.31       

EU AVERAGE    €1.54


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## The_Banker (6 Mar 2012)

Hi Gianni,
Do you know if the other countries pay the same levels of road tax and VRT?


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## Mucker Man (7 Mar 2012)

Yorky,

Maybe they should tackle the cost of running the state?


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## Purple (7 Mar 2012)

Yorky said:


> The money to run the state has got to come from somewhere. If not motor tax or VRT then some other area



Agreed. I find the same people who complain about tax increases also complain about cuts. The reality is we need more of both (lots of cuts and some tax increases).


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## Purple (7 Mar 2012)

Yorky said:


> Indeed but we have a low tax base which is unsustainable regardless of reductions in public spending.



We have a narrow tax base which is unsustainable regardless of reductions in public spending. Not enough indirect tax and income tax is way too low for the low paid.


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## Protocol (7 Mar 2012)

The_Banker said:


> Hi Gianni,
> Do you know if the other countries pay the same levels of road tax and VRT?


 
sOME COUNTRIES have VRT, other don't have any.

The annual ownership taxes also vary.

See here:



And here:


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## blueband (7 Mar 2012)

Purple said:


> Not enough indirect tax and income tax is way too low for the low paid.


thats right,   why dont they just heap more income tax on the low paid and then they wouldn't have to touch the car tax at all!!!


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## Purple (7 Mar 2012)

blueband said:


> thats right,   why dont they just heap more income tax on the low paid and then they wouldn't have to touch the car tax at all!!!



The low paid are under taxed, in terms of income tax, by EU standards.
The same is the case for the high paid but not be nearly as much.


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## werner (12 Mar 2012)

It's just more stealth taxation of a captive audience, instead of using fair progressive taxation all this government is doing is increasing further hardship, especially on the poorest through stealth taxation!


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## Purple (12 Mar 2012)

werner said:


> It's just more stealth taxation of a captive audience, instead of using fair progressive taxation all this government is doing is increasing further hardship, especially on the poorest through stealth taxation!



Income tax rates for the high paid are around the EU average. Income tax rates for those on low incomes are way below the EU average. I've no major problems with high earners paying more tax but it should be in the form of making children's allowance taxable etc, not in the form of higher income tax rates.


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## werner (14 Mar 2012)

Purple said:


> Income tax rates for the high paid are around the EU average. Income tax rates for those on low incomes are way below the EU average. I've no major problems with high earners paying more tax but it should be in the form of making children's allowance taxable etc, not in the form of higher income tax rates.


 
Childrens allowance? The various social welfare allowances are not on the radar of myself or my wealthier colleagues. The only form of equitable taxation is progressive taxation on earned income. I personally disagree with the unfairness of regressive taxes and the treatment of the less wealthy who are being penalised unfairly by numerous stealth taxes and all of the other regressive taxation measures.

I do agree that welfare reform is needed.


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## Purple (14 Mar 2012)

werner said:


> Childrens allowance? The various social welfare allowances are not on the radar of myself or my wealthier colleagues.



I'm on a high income, so is my wife. We have 4 children and are entitles to thousands of Euro a year in tax free welfare payments, payments that cost the country over €2 billion a year. Madness.


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