Farmers and farm contractors are having problems paying their annual commercial road tax renewals on vans and commercial 4x4s following a tightening up of regulations by some local authorities.

The Irish Farmers Journal has been contacted by a number of owners who have been refused renewal of their commercial 4x4 road tax at the rate of €333. In one case in Meath, the local taxation office was demanding a much higher passenger car tax rate, based on the older vehicle’s engine cubic capacity, which is more expensive than the newer CO2-rated motor tax system introduced in July 2008.

Farmers who are planning the renewal of their commercial van or 4x4 road tax need to be prepared to present more details including a RF111A goods only declaration form, a certificate of roadworthiness (DOE), an original commercial insurance certificate and either evidence of registration for VAT, a tax clearance certificate, notice of tax registration form, notice of assessment or a self-assessment letter from Revenue to confirm registration for self-assessed income tax. Many county councils now say that a herd number, flock number or tax clearance certificate will not suffice as evidence of commercial vehicle use.

Budget

In the last budget, road tax rates for heavy trucks were slashed by up to €4,295. With more than 10,500 heavy trucks taxed for use on Irish roads, the Irish Farmers Journal estimates the reduction in heavy truck road tax income for local authorities to be in the region of €45m annually.

It now appears that local authorities are seeking to recoup the huge loss in funding from the tightening up in commercial 4x4 and van taxation.

This is having a big impact on ownership costs of these farm vans and 4x4 commercial vehicles, many of which have been taxed at this lower commercial rate for more than 10 years.