Motor Tax Collection

Dáil Éireann Debate, Tuesday - 18 February 2014

Tuesday, 18 February 2014

Questions (513)

Marcella Corcoran Kennedy

Question:

513. Deputy Marcella Corcoran Kennedy asked the Minister for the Environment, Community and Local Government if he will examine the way in which motor tax is paid; if his attention has been drawn to the fact that if a person wants to pay their motor tax per quarter or half yearly they will incur an additional charge for doing so; if he will consider a waiver of the additional charge or a reduction in the additional charge for less well off persons who pay quarterly and half yearly; and if he will make a statement on the matter. [8044/14]

Written answers

Minister for the Environment, Community and Local Government

Motor tax is payable on an annual, half-yearly or quarterly basis. The half-yearly and quarterly payment options incorporate a surcharge element which covers the administrative costs involved in processing the higher volume of applications. The estimated annual income from the increased charges for half-yearly and quarterly vehicle licences is in the region of €50 million. A loss in income from this source would have a negative impact on the Local Government Fund and consequently on grant allocations to local authorities from the Fund, and would have to be borne elsewhere in the motor tax system, or through the taxation system generally.

I have no plans to adjust the surcharge element for paying motor tax on a half-yearly or quarterly basis.