Dáil Éireann Debate, Thursday - 30 June 2016
113. Deputy Imelda Munster asked the Minister for the Environment, Community and Local Government the rationale behind charging a higher level of motor tax for those who choose to pay quarterly; and if he has considered amending this as it is unfair on those who are not in a position to pay a large lump sum annually. [18861/16]
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 differential takes account of the extra workload for staff in motor tax offices and the Driver and Vehicle Computer Services Division of the Department of Transport, Tourism and Sport, which operates the online motor tax system, as well as 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.
The loss of income that would arise from changing these arrangements 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.
I have no plans currently to review the basis for paying motor tax on a half-yearly or quarterly basis.
