Dáil Éireann Debate, Tuesday - 20 June 2017
2136. Deputy Brendan Ryan asked the Minister for Housing, Planning, Community and Local Government if he will end the penalising of persons that can only afford to pay car tax in three-month or six-month instalments, in view of the fact that the annual price for car tax if paid over four three month periods is approximately 10% more expensive than paying car tax in one annual instalment; and if he will make a statement on the matter. [26520/17]
Amharc ar fhreagraMotor tax is payable on an annual, half-yearly or quarterly basis. The rates applicable for the half-yearly and quarterly options are 55.5% and 28.25% of the annual charge, respectively. These relativities have remained generally consistent since the 1960's.
The differential takes account of the extra workload for staff in motor tax offices and the Driver and Vehicle Computer Services Division of the Department of Transport, Tourism and Sport, which operates the online motor tax system, as well as the resultant administrative costs and printing costs that arise, including the issuing of renewal notices. Each quarterly renewal of motor tax follows the same administrative procedures as the annual renewal process. Consequently, renewing on a quarterly basis generates four times the workload of an annual renewal for the equivalent period.
Based on the number of transactions in 2016, the annual cost of abolishing the additional charge associated with the half-yearly and quarterly options would be in the order of €55.3m. The loss of income that would arise from changing these arrangements would have a negative impact on the total collected via motor tax and would have to be borne elsewhere in the motor tax system or through the taxation system generally; any such change could, therefore, only be considered in a Budgetary context.
I have no plans currently to review the basis for paying motor tax on a half-yearly or quarterly basis.
