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Motor Tax Increase Divides Fianna Fail

by Robert Lee, Tax-News.com, London

11 December 2002


Divisions within the Fianna Fail party have reportedly emerged this week over the imposition of the 12% increase in motor tax.

According to the Irish Independent, Finance Minister, Charlie McCreevy's refusal to include the measure in his budget angered ministers and backbenchers alike, as it meant that the Coalition government appeared to be delivering several lots of 'bad news' last week, rather than just the one.

'We were told after the summer that there would be no more drip-feeding of unpopular decisions like this, but it seems to be happening again,' an unnamed Fianna Fail TD complained to the newspaper.

However, Environment Minister Martin Cullen, who made the announcement on Friday, denied that there had ever been any question of the 12% tax hike being included in the budget, arguing that the motor tax decision was taken by him in the context of the local government fund.

'I never asked that it be put into the budget,' he explained to the Irish Independent. Mr McCreevy supported this statement at the weekend, announcing that an increase in car tax was a matter for the Department of the Environment, which was why Mr Cullen had announced the measure.


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