I 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.