Under existing arrangements, motor tax is payable in person or by post through motor tax offices. It is also payable online at any time, with the percentage of online usage increasing from 42% of motor tax transactions in 2010 to 72% in 2017. The shift to online usage is likely to increase further in coming years, with a corresponding reduction in the number of transactions being carried out in motor tax offices. As such, the provision of additional payment path for motor tax is likely to represent a diminishing financial return over time for any potential payment provider.
It should be noted that An Post are not the only potential service provider for alternative delivery of motor tax services and that there have been other expressions of interest in this regard. Accordingly, it would be expected that any outsourcing of service delivery arrangements would have to entail a competitive public procurement process.