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Motor Tax Yield

Dáil Éireann Debate, Tuesday - 4 February 2014

Tuesday, 4 February 2014

Questions (478)

Arthur Spring

Question:

478. Deputy Arthur Spring asked the Minister for the Environment, Community and Local Government the increase in revenue generated from motor tax as a direct result of closing the motor tax exemption loophole on 1 October 2013. [5550/14]

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Written answers

The Non-Use of Motor Vehicles Act 2013 came into effect on 1 July 2013. The Act provided for a three month transition period on commencement to allow vehicle owners to bring their motor tax status up to date by making both a retrospective and prospective off-road declaration. The new arrangements, only allowing for a future declaration, have been fully in force since 1 October 2013.

Monthly income comparisons for July to December 2012 and 2013 are set out below. However, it should be noted that for 2013 income, the impact of the 2013 Act in relation to off-road declarations is only one of a number of factors involved. In particular, the 2013 figures reflect the impact of the increase in rates announced in the December 2012 Budget. In addition, a further issue that has to be factored into the income comparison between 2012 and 2013 is the year-on-year reduction in income arising from the private vehicle fleet due to the switchover from motor tax based on engine capacity to that based on CO2 emissions, given that vehicles taxed under the latter regime carry a lower average annual tax. The impact of payment of once-off arrears would also need to be considered.

Income in January 2014 was the first month in respect of which the December 2012 Budget increases do not affect a comparison with the corresponding month the previous year. In that regard, income in January 2014 was €114,921,257, an increase of just under 12% on January 2013 income.

Month

Motor tax income 2012 (€)

Motor tax income 2013 (€)

Difference (€)

Percentage increase

July

92,339,722

102,150,278

9,810,556

10.62

August

84,961,804

89,363,654

4,401,850

5.1 8

September

74,728,486

97,517,447

22,788,961

30.49

October

86,482,093

101,287,487

14,805,394

17. 11

November

75,491,855

83,228,548

7,736,693

10.24

December

77,109,851

79,768,667

2,658,816

3.4 4

I will be considering, in conjunction with the Minister for Transport, Tourism and Sport, measures to evaluate the effectiveness of the new provisions for off road declarations.

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