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Tax Collection

Dáil Éireann Debate, Thursday - 4 November 2021

Thursday, 4 November 2021

Questions (168)

Denis Naughten

Question:

168. Deputy Denis Naughten asked the Minister for Transport his plans to reform the collection of motor tax; and if he will make a statement on the matter. [49961/21]

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Written answers (Question to Transport)

Motor tax is currently either collected online, through the www.motortax.ie website operated by my Department, or in 26 local authority areas, the latter encompassing a total of 46 locations around the country in which motor tax can be paid.

Of the almost 5 million motor tax discs issued in 2020, just under 4.3 million (86%) were issued through the online system, while some 690,000 (14%) were issued through motor tax offices. While Covid may have positively impacted the online take-up for the year, the numbers availing of the online channel have been increasing consistently year on year since its inception in 2004. Of the 5 million discs issued in 2019, 3.9 million (77%) transactions were conducted online.

There are no plans currently to reform the collection of motor tax, particularly given the high level of online take-up. However, an interdepartmental group was established in October 2018 to consider options around the provision of ‘offline’ Government services. It submitted a report to Government recommending that an ‘offline agent network’ be considered as a possible delivery model for a range of Government services, including motor tax. The Government noted the report and agreed to the establishment of a new sub-group to explore the potential of a One Stop Shop approach, including the identification of suitable services. I understand that the work of the group is at an advanced stage and that a report will be submitted to Government in the near future. The question of any potential changes to the present system for collecting motor tax will be considered in that context.

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