The Society of the Irish Motor Industry (Simi) today has welcomed moves by the Minister for Environment, John Gormley, to backdate a lower 'green' motor tax to January.
Under new plans to be introduced in the coming days by the Minister, motorists who have bought low CO2 emission cars from January 1st this year will be able to qualify for reduced motor taxes.
The plans follow on from the Budget decision when the Government proposed a new motor tax system to come into force from June 1st, where lower emission cars would pay less road tax than their high carbon dioxide-emitting counterparts.
Director general designate of SIMI, Alan Nolan, said he welcomed the move as it helped people make "good decisions".
Speaking on radio this morning Mr Nolan said: "I think people out there looking at buying cars would have been really focused on whether the road tax effect would not kick in until July and it would certainly have been causing problems."
"The fact that the minister has moved to say any advantage coming in July is available now is a huge plus," he added.
Fine Gael environment spokesman Phil Hogan welcomed Mr Gormley's decision but called on him to explain how motorists will be refunded if they have already bought their new greener car
"This move will encourage people to buy low emitting cars now and to reward them with lower annual car taxes for the years to come," Mr Hogan said in a statement.
"But he also needs to close the window which gives people buying 'gas guzzlers' until July to make their purchase, because after that, they will be penalised with higher motor tax."