Motor Tax Collection

Tuesday, 16 April 2013

Questions (751)

Dessie Ellis

Question:

751. Deputy Dessie Ellis asked the Minister for the Environment, Community and Local Government the way the figure for the extra administrative costs relating to the payment of motor tax in instalments is arrived at; and if he will provide a breakdown of the extra costs related to processing each different option for payment by instalment. [17309/13]

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Written answers

Minister for the Environment, Community and Local Government

The rates of duty currently applicable to half-yearly and quarterly discs are 55.5% and 28.25% of the annual rate respectively and incorporate a surcharge element to cover the higher administrative costs involved in processing such applications. These relativities have remained generally constant since the 1960s .

The number of annual, half-yearly and quarterly transactions in 2012 is set out in the table below.

Vehicle Licence	Number of transactions	Percentage of transactions
Annual	1,455,061	31
Half Yearly	684,003	15
Quarterly	2,483,215	54
Total	4,622,279	100%

Non-annual transactions make up over two-thirds of all motor transactions processed. As well as the increased direct costs related to the printing and issuing of non-annual vehicle licences, the issuing of renewal notices, and the attendant postage costs associated with the foregoing, the cost of staff time in processing and recording non-annual licences must also be factored in. The specific cost breakdown is not available.