Dáil Éireann Debate, Wednesday - 17 September 2014
21. Deputy Seamus Healy asked the Minister for the Environment, Community and Local Government if he will reduce the penal additional charges paid by motor tax customers who, due to financial constraints, may only tax their vehicles for three and six month periods; and if he will make a statement on the matter. [34315/14]
View answerMotor tax is payable on an annual, half-yearly or quarterly basis. The rates applicable for the half-yearly and quarterly options are 55.5% and 28.25% of the annual charge, respectively. These relativities have remained generally consistent since the 1960s.
The estimated additional annual income from the increased charges for half-yearly and quarterly discs is in the region of €50m. A loss of income from this source would have a negative impact on the total collected via motor tax, and would have to be borne elsewhere in the motor tax system, or through the taxation system generally.
The differential also takes account of the extra workload for staffing in motor tax offices and the National Vehicle and Driver File, and the resultant administrative costs and printing costs that arise, including the issuing of renewal notices. Each quarterly renewal of motor tax follows the same administrative procedures as the annual renewal process. Consequently, renewing on a quarterly basis generates four times the workload of an annual renewal for the equivalent period.
I have no plans to review the basis for paying motor tax on a half-yearly or quarterly basis.
