Holly Cairns
Question:241. Deputy Holly Cairns asked the Minister for Transport if he will ensure that individuals who choose to tax their car on a quarterly basis are not charged extra than those who do so annually. [12485/23]
View answerTuesday, 21 March 2023
Questions (241)
Written answers
Motor tax is payable on an annual, half-yearly or quarterly basis. The rates applicable to the half-yearly and quarterly options are 55.5% and 28.25% of the annual charge, respectively. These figures have remained generally consistent since the 1960s.
Each renewal of motor tax incurs the same transaction costs on the Department of Transport or the local Motor Tax Offices, in terms of staffing, tax disc printing and postage, regardless of the period covered. The relatively modest higher charges for quarterly or half-yearly renewals reflect these additional costs.
In addition to the increased costs, such an equalisation of rates at lower levels as proposed would also have a significant impact on motor tax revenue for the Exchequer. If the payment options were on an equal pro-rata basis the loss in terms of motor tax revenue for the Exchequer is estimated at over €35 million per annum, based on 2022 figures. This is therefore also a budgetary matter and would have to be considered in that context.