Dáil Éireann Debate, Thursday - 6 March 2014
171. Deputy Terence Flanagan asked the Minister for the Environment, Community and Local Government the background to the current system for taxing vehicles; if there are plans to look at a fairer system for taxing vehicles; and if he will make a statement on the matter. [11428/14]
View answerThe basis for the levying of motor tax is contained in a number of enactments dating back to the 1920s, and the system of taxation is kept under review and updated on a regular basis. Motor tax classes and rates are provided for in the Schedule to the Finance (Excise Duties)(Vehicles) Act 1952, and changes to the rates of motor tax rates are effected by amendment to the Schedule. Rates for commercial vehicles are currently based on unladen weight. Rates for private vehicles registered prior to 1 July 2008 are based on engine capacity, and rates for vehicles registered after that date are based on the CO2 emissions of the vehicle given on the Certificate of Conformity for the vehicle. All of the foregoing are based on a graduating scale, with higher rates for heavier vehicles or for those with higher carbon emissions.
There is a separate tax class for large public service vehicles and youth and community buses, where rates are at a concessionary rate of motor tax, depending on the seating capacity of the vehicle. There are also a number of smaller tax classes, such as hearses, agricultural tractors, vintage and veteran vehicles (i.e. those over 30 years old) etc., most of which carry a concessionary rate of tax, as they are in limited use on the public road. Certain vehicles are also exempt from paying motor tax, such as ambulances, fire engines and vehicles qualifying under the Disabled Drivers and Disabled Passengers )(Tax Concessions) Regulations 1994.
The 1952 Act makes provision for the setting of non-annual periods for taking out a motor tax disc and for the setting of rates for such discs. Motor tax can currently be paid annually, half-yearly or quarterly. The half-yearly and quarterly payment options incorporate a surcharge element which covers the administrative and printing costs involved in processing the higher volume of applications. In addition, reminders are issued on each renewal. The Act also makes provision for the granting of refunds in certain limited circumstances.
While the operation of the motor tax system is kept under regular review, I have no plans currently to move away from the current basis of charging for motor tax for private vehicles. A Working Group has been set up, chaired by the Department of Transport, Tourism and Sport, to examine the feasibility of introducing a road charging regime for HGV’s in Ireland in the medium term, and I will review the basis of charging for commercial vehicles following the outcome of that review. Proposals have previously been made to move from taxation of vehicles to taxation of the use of vehicles, through for example increasing the rate of taxation on road fuel. I have no plans to introduce such a system.
