The European Commissioner for Taxation and Customs, László Kovács, has called on the Government to reconsider its opposition to overhauling vehicle registration tax.
The tax brings in more than €1bn to the Irish economy. Ireland has resisted pressure to change the tax in the past but the commission is proposing to reform it. Earlier today, Mr Kovács met Finance Minister Brian Cowen to discuss the issue.
In Ireland, up to a quarter of the price of a vehicle can go on vehicle registration tax. In some EU countries it is only a few hundred euro.
The European Commission wants to create a level playing field across the EU so there will be a single market for cars.
