Vol. 477 No. 5
149 Mr. Haughey asked the Minister for the Environment the position regarding old age pensioners and the funding of local government; if old age pensioners will be given an exemption from paying increased car tax under the new proposals, similar to the waiver scheme currently in place by local authorities in relation to water charges; and if he will make a statement on the matter. [9618/97]
Under the new arrangements for the financing of local authorities, the proceeds of motor taxation at existing rates are being assigned to local authorities. This will have no impact on old age pensioners or any other category of motorist. The increase in motor taxation which local authorities will be allowed at their own discretion to implement to finance local services generally in the next two years will not exceed 6 per cent, will have only a minimal impact on any individual motorist and will amount to only a very small proportion of the total cost of maintaining a car.
