Dáil Éireann Debate, Wednesday - 16 January 2013
654. Deputy John McGuinness asked the Minister for the Environment, Community and Local Government the estimated number of vehicles not being taxed in any given year and therefore the estimated loss of revenue to the State; if he will consider putting in place an easy payment scheme without extra cost to those who might use the scheme to encourage greater compliance; and if he will make a statement on the matter. [1130/13]
View answerAn analysis of non-use declarations relating to motor tax to the year ending August 2012 showed that there were a total of over 538,000 such declarations during that time, 110,000 of which related to a change of vehicle ownership. The total value of the exemptions was €110m. While in some cases such declarations of non-use will be genuine, it is suspected that there is widespread abuse and it is estimated that the abolition of such abuse would generate income of some €55m annually. The Government approved the drafting of a Bill on 22 May 2012 to replace the current retrospective system of making declarations of non-use with a system whereby declarations must be made in advance of the vehicle being taken off the road. The Bill is at an advanced stage of drafting in the Office of the Attorney General and is expected to be published shortly.
I have no plans to make changes to the current payment options for motor tax. The current half-yearly and quarterly payment options incorporate a surcharge to cover the higher administrative costs involved in processing such applications. The estimated annual income from the increased charges for half-year and quarterly vehicle licences is in the region of €20m. Were a monthly pro-rata system to be introduced, the loss in income would have to be compensated for elsewhere in the motor tax system, or through the taxation system generally. It would also have a negative transitional impact on the flow of income to the Local Government Fund and consequently on grant allocations to local authorities from the Fund.
In considering options for a monthly payment option, regard would also have to be had to the set-up costs in the motor tax system, and increased ongoing administrative and financial costs and controls.
