Dáil Éireann Debate, Tuesday - 28 July 2020
126. Deputy Pearse Doherty asked the Minister for Transport, Tourism and Sport the estimated full-year cost in 2021 of abolishing the punitive motor tax surcharge by which motor tax paid for periods of three or six months are more expensive, in monthly costs, than the cost of motor tax for a period of 12 months; and if he will make a statement on the matter. [18777/20]
View answerMotor tax is payable on an annual, half-yearly or quarterly basis. Motor tax taken out on a half-yearly and quarterly basis is charged at 55.5% and 28.25% of the annual rate respectively.
Based on the volume of transactions in 2019, the estimated annual cost to the Exchequer of setting the half-yearly and quarterly rates at 50% and 25% of the annual rate respectively is €45.7m. This does not take account of the likely cost of additional administration arising from the likelihood that more users may opt to tax their vehicles for short periods and therefore require more frequent renewals.
