The annual road tax rate for loading shovels and telehandlers is set to increase from €102 to €333 per machine, according to the Association of Farm & Forestry Contractors (FCI).

The Association has said it has been made aware in recent days of changes in the annual road taxation rate, which means farmers and contractors with loading shovels and telehandlers will have to fork out an extra €231 per machine, annually.

The news comes as local authorities are this week writing to owners of loading shovels and telehandlers telling them that they need to change the tax class classification for these vehicles from “Tractor/Excavator/Digger” to “Mobile Machine”, which will mean a change in the annual rate of tax.

An FCI spokesperson said: “This change has been introduced without consultation following a review by the Road Safety Authority (RSA) and on the instruction to each local authority by the Department of Transport which is responsible for the collection of road tax.

Research

“FCI research has shown that there were 4,845 machines taxed as an excavator/digger which incur the new rate.

“A large number of these machines are in agricultural contractor fleets, meaning that agricultural contractors will have to fund the additional €1.1m in taxation costs.

Research

The spokesperson continued: “FCI is carrying out further research on the issue to identify why the taxation change was requested by the RSA and what mandate the RSA has in terms of vehicle taxation rates.

FCI have said 4,845 machines are involved which will cost an additional €1.1m in taxation costs.

“FCI will be requesting that the Department of Transport reverse this decision, as adding €231 to the cost of paying annual road tax for loaders and telehandlers will have no implications for additional road safety.

“FCI believes that this is a mere tax collection exercise and one that was not requested and was introduced without any consultation with stakeholders, the majority of whom are agricultural contractors,” the Association spokesperson concluded.