Dáil Éireann Debate, Wednesday - 6 June 2012
524 Deputy Sandra McLellan asked the Minister for the Environment, Community and Local Government if he will consider permitting persons to pay their road tax for 12 months in instalments through a direct debit of 12 monthly payments; and if he will make a statement on the matter. [27190/12]
Amharc ar fhreagra620 Deputy Martin Heydon asked the Minister for the Environment, Community and Local Government if, in the current environment, he will consider a proposal to allow persons to pay motor tax through a direct debit system by spreading the annual cost over a 12 month period, as currently exists for television licences for example, rather than the current situation where a surcharge is incurred by those who have to pay in instalments of three months, thereby increasing the overall cost for those persons who do not have access to the total annual cost up-front; and if he will make a statement on the matter. [27146/12]
Amharc ar fhreagraI propose to take Questions Nos. 524 and 620 together.
I have no plans currently to introduce a monthly direct debit payment option for motor tax. The surcharge on non-annual vehicle licences was designed to cover the higher administrative costs involved. Current surcharge levels are lower than the maximum permitted under motor tax law.
The estimated annual income from the increased charges for half-year and quarterly vehicle licences is in the region of €20m. Were a monthly pro-rata system to be introduced, the loss in income would have to be compensated for elsewhere in the motor tax system, or through the taxation system generally. It would also have a negative transitional impact on the flow of income to the Local Government Fund and consequently on grant allocations to local authorities from the Fund.
In considering options for payment by direct debit, regard would also have to be had to the set-up costs in the motor tax system, any increased ongoing administrative and financial controls/costs, bank charges, uncertainty as to payment of motor tax and subsequent problems for enforcement of non-payment and retrieval of motor tax discs. In addition, changes of vehicle ownership, over 750,000 annually, undertaken during an instalment period could also present major problems.
