Irish drivers hit by tax reforms

Motorists in Ireland have been asked to dig a little deeper when parking their car following a series of tax reforms that will see VAT payable on public car parks and road tolls across the country.

Under proposals in the Finance Bill, drivers will be hit with the VAT charges as part of a wider programme of measures designed to stabilise public finances and stimulate long-term economic recovery.

Finance Minister Brian Lenihan said the new laws will put the country on an even economic footing as it emerges from recession.

"It also ensures that all sectors play their part in stabilising the public finances and thereby restoring domestic and international confidence in our economy," Mr Lenihan said.

"These measures, together with our budgetary strategy, will create and protect jobs by supporting export led growth in services and goods."

However, the introduction of the measures has drawn criticism from opposition parties, claiming they will only further exacerbate the financial woes that motorists have experienced during the downturn.

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