A Kerry TD has called for a motor tax waiver to help offset the rising cost of living.
Deputy Government Chief Whip Brendan Griffin argued that the government was benefiting from a higher tax income as a result of the increasing fuel prices and that it was only fair they gave something back.
Deputy Brendan Griffin argued that there is very little recreational driving going on because people simply can’t afford to do so and that the government should give people a break.
He suggested the Minister of State for Road Transport introduce a motor tax renewal waiver for 12 months.
Asking Hildegarde Naughten if she would consider the move, he said that the people who could really do with some help are those who are penalised for driving older cars.
The Fine Gael Deputy welcomed the reduction in public transport costs, however argued that it was of no benefits to those living in rural areas.
Responding to Brendan Griffin, Minister of State Hildegarde Naughten said the motor tax industry is worth €908 million to the exchequer and the waiver would create a lot of logistical challenges such as providing refunds to those who have already renewed.
She insisted that motor tax hasn’t contributed to the rising cost of living and that an abolition would reduce the incentive for people to move to less polluting cars as the current tax system differentiates in favour of environmentally friendly vehicles.
She said measures to reduce the cost of living was a matter for consideration as part of the budgetary preparations.