The proposed annual road tax increase from €102 to €333 for loading shovels and telehandlers has been withdrawn, according to the Association of Farm & Forestry Contractors (FCI).

In a statement released to the Irish Farmers Journal, the association explained: “Following extensive FCI discussions with the Department of Transport and Kilkenny County Council Motor Tax Office, FCI was informed yesterday (Wednesday) that the proposed annual road tax increase from €102 to €333 has been withdrawn and has the requirement to re-classify loaders/telehandlers as mobile machines rather than the existing classification of excavator/diggers.”

The association added: “Kilkenny County Council Motor Tax Office has informed FCI that it will be writing to those loader owners to withdraw the instructions to re-classify the machines and will accept Road Tax renewal at the existing €102 rate.

“The proposed changes were based on an interpretation of a guidance note produced for the Department of Transport by the Road Safety Authority”.