A PARKING LEVY WHICH will see commuters paying €200 a year to park at their city workplace has been delayed until January.

The scheme is due to be piloted in Dublin before being extended to areas of Galway, Cork, Limerick and Waterford cities.

The Irish Independent writes today that government sources say the levy will first be introduced to Dublin city’s main business area, suggesting the areas surrounding the Royal and Grand Canals.

It is understood that Minister Brian Lenihan has yet to sign off on a January start date for the levy, which is designed to encourage commuters to rely on public transport rather than driving to work.

The scheme was first announced by Lenihan in Budget 2009, and requires employees in designated areas to pay €200 annually to use a space provided by their employer. Self-employed persons are exempt from the plan, but are expected to charge their employees for the space, according to the Revenue Commissioners.

Employers will deduct the levy from workers’ pay cheques.

In June, a survey of 1,500 drivers conducted by AA Ireland showed that some 68% of motorists opposed the introduction of the parking levy, according to RTÉ.