A concessionary rate of motor tax for motor caravans was introduced in 1998. I understand that the rationale behind the introduction of the concessionary rate was that, while motor caravans are generally less in use than many other categories of vehicle, rates of motor tax were relatively high. The average engine capacity of a motor caravan was estimated at 2.5 litres and the motor tax for an engine of that capacity was significantly higher than the tax being paid by owners of motor caravans in the United Kingdom.
I understand it was also considered that a concessionary annual rate of tax for motor caravans would encourage tourism and tourist related activities, not least by facilitating more out-of-season use of motor caravans, where previously owners may have taxed and used the vehicle for only three months of the year due to cost. Concessionary rates of tax (€99 or less) are available on an annual basis only and not quarterly or half-yearly.
Question No. 894 answered with Question No. 820.