Electricity, motoring and TV licences set to cost more

Consumers will be faced with increased electricity bills, motor tax, VAT and vehicle registration tax as they wake up to a new year tomorrow.

From January 1st, the 12½ per cent VAT rate will increase by 1 per cent, affecting a wide range of goods and services such as the tourism industry, hairdressers, cinemas and car repairs.

Hotels, restaurants, car hire and golf courses will all be hit by the increase at a time when the tourism industry has been criticised for failing to maintain price competitiveness with other markets.

It will be a costly year for motorists as the effect of the 12 per cent rise in motor tax comes into effect tomorrow. Tax on cars with a 1,400cc engine will now cost €278 a year, while it will cost €513 to tax a two-litre vehicle.

Some motorists will also be hit by increased vehicle registration tax (VRT). From tomorrow cars from 1,901cc upwards will be taxed at the 30 per cent VRT rate, a 5 per cent increase in some cases.

This follows an increase of three cent a litre in the price of diesel introduced by the Budget earlier this month.

Motorists could also be hit by an increase in parking charges in Dublin. The City Council has proposed increasing these to €2.28 per hour in the city centre and €1.80 elsewhere. However, the city councillors have failed to reach agreement on a 2003 budget due to a dispute over refuse charges.

Electricity bills will soon become steeper for householders as all domestic electricity used from January 1st will cost 13.25 per cent more.

The increased cost will begin to filter through as customers' two-monthly bills are issued but will only apply to the electricity used since January 1st.

The average household bill is less than €90, so the price increase will result in a €12 increase in a typical bill, according to the Commission for Energy Regulation.

Accessing your money to pay these bills will also prove more expensive this year. The Budget increased the stamp duty on every cheque from eight to 15 cent, while the stamp duty on credit cards has risen from €19 to €40 a year.

The stamp duty on ATM cards has risen from €6.25 to €10 while Laser cards now cost €20, a rise of €13.75.

The effect of the Budget's increase in cigarette and alcohol prises was being keenly felt during the festive season. The standard measure of spirits now costs 20 cent more while tax on spirit-based "alcopops" increased by 35 cent a bottle. A packet of cigarettes is 50 cent more since December 5th.

The decision to increase the television licence to €150 will soon be felt as current licences expire in the coming months. Cable television charges have also increased, with NTL implementing a new 9 per cent increase from tomorrow.

VHI premiums rose by 18 per cent in September, while Bus Éireann, Iarnród Éireann and Dublin Bus fares have all increased by an average 9 per cent in the past month.

Just before Christmas, An Post was given permission to raise the cost of posting a letter to other EU states.