From January 1 drivers of vehicles in road tax bands A, B and C will see increases of up to 53 per cent in annual motor tax costs. At the same time drivers of vehicles in the higher tax bands and those taxed on the pre-2008 engine size-based system will see a comparatively modest increase of 7.5 per cent. Fiat Ireland finds these increases "deeply unfair as they specifically target those conscientious buyers who recently opted for cleaner and more energy-efficient vehicles."
Following the budget announcement, the following statement was released:
"Fiat Group Automobiles Ireland wishes to make it known that it is dismayed at the news today that both fuel prices and motor tax rates are being targeted in the 2012 Budget, with drivers of cleaner, more efficient vehicles being particularly hard hit."
The increase in Carbon Tax, that saw petrol and diesel rise by 1.4 and 1.6 cent a litre respectively at midnight, to be followed by a 2 per cent rise in VAT, shows that "there has clearly been no thought given to all of those people living in remote areas, those driving back and forth every day from commuter towns, or those families with young children where there is no other suitable transport alternative."
"Quite simply, Fiat Group Automobiles Ireland sees the motor vehicle as a vital and hugely under-rated cog in the Irish economic machine and not a soft-target luxury to be taxed on whim."
"For the reasons outlined above, Fiat Group Automobiles Ireland will be actively engaging in the consultation process announced by the Minister for Finance, Mr. Michael Noonan, T.D, in his 2012 Budget speech and will endeavour to secure for the Irish motorist a more equitable VRT and motor tax system while also providing the industry with a new number plate system which encourages a more even spread of sales throughout the year as well as more lead time to adapt to future taxation or policy changes."