A flat rate levy of €200 is to be introduced in major urban areas where an employer provides car parking facilities for workers.
Finance Minister Brian Lenihan said that as part of the Government's overall programme to support a sustainable environment, he will introduce a flat rate levy in the major urban areas of €200 where an employer provides car parking facilities for workers.
He is also proposing a tax incentive to promote cycling to work.
'These initiatives seek to encourage greater use of public transport and ease congestion in our major cities,' he stated.
On Motor Tax, the Minister said he is proposing to increase motor tax rates by 4% for cars below 2.5 litres and CO2 bands A to D. A 5% increase will apply to cars above the 2.5 litre threshold and CO2 bands E,F and G. Goods and all other vehicles will also increase by 4%.
The Finance Minister said that the Government has committed itself to introducing a carbon levy, on a revenue neutral basis, during its lifetime. Updating the Dail, he said that the Commission on Taxation has been asked to examine the matter and he expects a report on this next September.
He said he will make a firm announcement on a carbon levy in his Budget 2010 speech which will ensure that the country's economic prospects are protected and enhanced.
Mr Lenihan said that demand for local government services is increasing all the time and he added that it is important that these authorities can operate on a sustainable financial basis.
To this end, he said that he is introducing a charge on all non-principle private residences - or second homes. It will be levied and collected by local authorities and will be used to support the provision of local services.
The new charge will be set at €200 per dwelling and will come into effect in 2009. Owners of private rented accommodation, holiday homes and other non-principle residents will have to pay the new charge.
