Dáil Éireann Debate, Wednesday - 13 July 2022
98. Deputy Ged Nash asked the Minister for Transport the estimated cost to the Exchequer of ending the additional charge on quarterly and half-yearly motor tax payments; and if he will make a statement on the matter. [38689/22]
View answer112. Deputy Ged Nash asked the Minister for Transport his plans to reform the calculation method for quarterly, half-yearly and annual charging for motor car tax; his views on whether the system unfairly and excessively overcharges those motorists in the lower income brackets that avail of the quarterly or half-yearly charge; and his plans to reform the motor car tax system [38642/22]
View answerI propose to take Questions Nos. 98 and 112 together.
Motor tax can be paid annually, half-yearly or quarterly. Half-yearly or quarterly renewals involve additional costs to process and administer. Therefore, the rate for the half-yearly option is 55.5% of the annual rate, and, for the quarterly option, 28.25% of the annual rate. These ratios have remained generally consistent since the 1960s. The loss of income from equalising rates for these options would have a negative impact on motor tax revenue and would have to be borne elsewhere in the motor tax system or in the taxation system generally. The potential loss to the Exchequer has been estimated at just over €37m, based on the volume of transactions in 2021. Given the sum involved, any proposed reform of the current structure is a matter for consideration in the context of Budget preparations.
