Minister should have addressed 'ridiculous' road tax payable on older vehicles: AA

The AA has said Budget 2015 contains "relatively good news" for motorists.

Minister should have addressed 'ridiculous' road tax payable on older vehicles: AA

The AA has said Budget 2015 contains "relatively good news" for motorists.

Finance Minister Michael Noonan today announced that there will be no tax increases on petrol and diesel or in vehicle registration tax and motor tax.

Director of Consumer Affairs at the AA Conor Faughnan said Michael Noonan had missed an opportunity to reform VRT.

"He's done nothing to address an anomaly in the car tax system which makes it particularly unfair for older vehicles," he said.

"Lots of people are driving cars that are nine and 10 years old, taxed under the old system and some of those cars pay a ridiculous amount of road tax compared to newer vehicles. That's an unfairness that he had a chance to address and unfortunately, that wasn't addressed today."

Meanwhile, Alan Nolan, director general of the Society of the Irish Motor Industry (SIMI) said: "We particularly welcome the Minister’s statement that none of the motoring taxes have been increased.

"The Budget measures announced today mean that we can be confident about the year ahead.

" The increase in consumer spending power, resulting from today’s Budgetary measures, will help to increase business activity, creating thousands of extra jobs in our Sector, and will boost Exchequer tax revenues in 2015."

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