Motor tax is to be increased in the Budget, the Minister for the Environment Phil Hogan has confirmed.
Speaking on The Week in Politics, which is to broadcast on RTE tonight, Mr Hogan said there would be "adjustments in the bands and in the rate" of motor tax.
However he denied reports in some newspapers today that motor tax would rise by as much as 63 per cent.
He said the Minister for Finance Michael Noonan had no choice but to raise money from motor tax as part of the effort to reduce the budget deficit.