Dáil Éireann Debate, Tuesday - 6 November 2012
658. Deputy Pat Deering asked the Minister for the Environment, Community and Local Government in view of the current financial pressures on many persons and families, if he will consider dropping the surcharge for paying motor tax for periods of less than 12 months or if any easy payment plan will be put in place. [47990/12]
View answer722. Deputy John Paul Phelan asked the Minister for the Environment, Community and Local Government if any consideration has been given to equalising the cost to the public of taxing their motor vehicles online for a 12 month period, with the six or three month period, due to the financial difficulties that many households face and the possibility that this charge may lead to greater adherence to this tax; and if he will make a statement on the matter. [48353/12]
View answerI propose to take Questions Nos. 658 and 722 together.
I am not currently considering changing the basis for the charging of motor tax for three and six month discs or altering existing payment options for motor tax. Tax rates for three and six month discs are set at a higher rate than the annual fee to take account of the extra workload for the National Vehicle and Driver File (NVDF) and motor tax offices, and the resultant higher administrative and printing costs. In addition reminders are issued on each renewal.
Any proposal to introduce an easy payment option would further increase the workload and costs for the NVDF and motor tax offices and the rates set for motor tax would have to reflect that increase. It would also impact on the flow of income to the Local Government Fund and consequently on grant allocations to local authorities from the Fund.
