Motorists and hauliers have reacted angrily to the 12 per cent increase in motor tax announced by the Minister for the Environment, Mr Cullen.
His announcement of the biggest once-off road tax rise in 10 years came yesterday after details of the increase were revealed in The Irish Times.
The AA said it received many calls from "livid" motorists across the State.
Its public affairs manager, Mr Conor Faughnan, described the increase as exasperating for motorists. "It would have been more honest if the Government had introduced this in the Budget," he added.
It appeared, he said, that motorists were having to foot the bill for cost overruns on road projects under the National Development Plan.
"It seems to us the Government's response to these overruns is not to get its act together on cost control but simply to go back to the motorist to get more money.
"Motorists would not mind paying more if they saw value for money but if they are watching it being frittered away on overruns, it makes them angry."
Mr Cullen said motor tax had not kept up with inflation.
"This across-the-board increase of 12 per cent is against the background of a 33 per cent increase in inflation in the last 10 years compared to a 12 per cent increase in motor tax rates," he said.
He added that the money generated would fund improvements to non-national roads.
Mr Faughnan wasn't convinced. He said that previous promises that the money would be ring-fenced for local roads hadn't been kept.
The chief executive of the Society of the Irish Motor Industry, Mr Cyril McHugh, described the increase as savage. He said Irish motorists were paying far more than their fair share in taxes.
The increases will be effective from January 1st next. Tax on one-litre cars will increase by €15.48 from €129 to €144.48; 1.2 litre car tax will increase by €25.56 from €213 to €238.56; tax on 1.4 litre cars will increase by €29.76 from €248 to €277.76; the tax on 1.6 litre cars increases by €39.84 from €332 to €371.84 and the tax on two-litre cars goes up by €54.96 from €458 to €512.96.
The cost of trade plate licences also increases by 12 per cent, bringing the cost of a pair of plates for cars or vans from €228 to €255.36.
The Irish Road Haulage Association said the increase was yet another blow to the industry which had already been hit with a 3 per cent increase in diesel prices in the Budget.
Its spokesman, Mr Jimmy Quinn, claimed the industry was being treated unfairly by the Government.
"It is becoming increasingly difficult for hauliers to operate in this country and clearly there are problems which need to be addressed."
Opposition parties also condemned the increases.
The Labour Party's environment spokesman, Mr Eamon Gilmore, said the increase was directly caused by the 27 per cent cut in funding of non-national roads announced in the Estimates and the freezing of Exchequer money for the Local Government Fund.
"The only pothole that this money is going to fill is the hole left in local authority finances by the Government," he said.