Motor Tax Collection

Dáil Éireann Debate, Tuesday - 9 July 2013

Tuesday, 9 July 2013

Questions (362)

Simon Harris

Question:

362. Deputy Simon Harris asked the Minister for the Environment, Community and Local Government if he will consider rectifying the substantial additional cost which motorists who tax their vehicles on a quarterly basis must pay as opposed to those who tax their car annually, particularly in view of the fact that many persons find themselves not in a financial position to pay the full amount in one lump sum and the fact that administrative costs in relation to motor taxation are lessened in view of the fact that motorists now apply for their tax disk online; and if he will make a statement on the matter. [32982/13]

Written answers

Minister for the Environment, Community and Local Government

I have no plans to change the basis for the charging of motor tax for three or six month discs. Tax rates for these 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. While costs have reduced in respect of those paying on-line, they are not negligible.

The annual income from the increased charges for three and six month discs in 2012 was over €50m. Were changes to be introduced to charge for these discs on a pro-rata basis, the loss in income would have to be compensated for elsewhere in the motor tax system, or through the taxation system generally.