Many motorists are staring down the barrel of a 63% increase in car tax and everyone faces a 4c a litre increase for every litre of petrol after the forthcoming budget, according to The Sunday Times.

The newspaper predicts motor tax in general will rise by 5% but the newer, ‘greener’ vehicles will “face a steeper increase as part of a ‘rebalancing’ of the system of road taxes introduced in 2008”.

Those on Band A – the lowest emissions bracket – will see an increase from €104 to €170 a year. Those in Band B face an increase from €156 to €220 and Band C will rise from €302 to €350. Obviously, the ‘rebalancing’ will not mean reductions for those paying higher motor tax.

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