Builders who commute in their work's van face a slap from the Government with news of a €900 tax hike on all drivers use their work vehicles for personal use.

Motorists who drive commercial 4 x 4s and small vans will be affected.

Even though the AA has called the changes "silly" the move is to go ahead and will hit small businesses in the pocket.

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Dáil Environment Minister John Gormley's plan will see owners of commercial 4 x 4s and small vans having to sign a Goods Only Declaration in a Garda station to avoid the taxation.

They will have to state that they will not drive the vehicle for social, domestic or pleasure purposes.

However, if the Gardaí subsequently catch them behind the wheel on a non-work related outing they will have to pay on average more than €1,200 motor tax rather than the reduced commercial rate of under €300.

The Environment Minister said the new rules close a tax loophole, but Fine Gael's Denis Naughten said it could be the final straw for businesses already on a tightrope.

(BMcC/GK)