The Irish Farmers' Association has criticised the circular from the Department of the Environment to County Councils on the requirement for a 'Goods Only Declaration' when taxing small commercial vehicles.
IFA leader John Bryan said the circular has sent a shockwave through rural Ireland.
He said farmers are now fearful that the use of a van or jeep to collect a child from school or to do the weekly shopping could be deemed a criminal act.
Mr Bryan said it is obvious that the Government is urging County Councils to tighten the rules on commercial vehicles.
He said this would put unbearable pressure on farm families and rural businesses.
A spokesman for Environment Minister John Gormley said the circular involved no change in the rules.
He said people who availed of cheaper road tax for commercial vehicles had always been required to sign a declaration at their local garda stations that they would not use the vehicles for 'social, domestic or pleasure purposes'.