Dáil Éireann Debate, Tuesday - 21 February 2012
429 Deputy John Lyons asked the Minister for the Environment, Community and Local Government if he will consider introducing a direct debit standing order payment option for persons to pay their motor tax; if he can explain the increased cost of paying motor tax in three month instalments as opposed to paying 12 months in one payment; and if he will make a statement on the matter. [9829/12]
View answerThere are no plans to introduce a direct debit standing order payment option for motor tax.
Under the current system, motorists may tax their vehicles on an annual, half-year or quarterly basis. The half-year and quarterly rates of motor tax are set in law at a higher rate than the annual fee to take account of the extra workload for motor tax offices and the resultant higher administrative and printing costs. A quarterly renewal of a motor tax disc is equivalent to processing four annual discs in that the same administrative procedures have to be followed each time. In addition, reminders are issued on each renewal. The additional work created by the half-year and quarterly disc system is thus considerable and the higher rates reflect the additional costs arising.
It should be noted, however, that at present the half-year and quarterly charges are lower than those permissible under law. The Finance (Excise Duties) (Vehicles) Act 1952 provides that the rate of duty for a quarterly licence must not exceed 30% of the full annual duty applicable and sets no upper limit for a half-yearly disc. The rates of duty currently applicable to half-year and quarterly discs are 55.5% and 28.25% of the annual rate respectively.
