Dáil Éireann Debate, Tuesday - 8 September 2020
230. Deputy Denis Naughten asked the Minister for Transport if a refund or motor tax credit will be issued to motorists who did not use their car or used it to a minimal extent during the Covid-19 lockdown in line with many insurers; and if he will make a statement on the matter. [22113/20]
Amharc ar fhreagraMotor tax legislation provides for refunds in certain limited circumstances, where:
- a vehicle has been scrapped or destroyed;
- a vehicle has been permanently exported;
- a vehicle has been stolen and has not been recovered by the owner;
- a vehicle in respect of which a tax disc has been taken out has not been used in a public place at any time since the issue of the disc;
- the owner of a vehicle has ceased, because of illness, injury or other physical disability, to use the vehicle;
- the owner of a vehicle has ceased, because of absence from the state for business or educational purposes, to use the vehicle; or
- the owner of a vehicle has ceased, because of service overseas with the Defence Forces, to use the vehicle.
There are no plans currently to amend the legislation to extend the grounds for the granting of a refund.
I understand that refunds of a proportion of motor insurance paid were given on the basis of reduced risk due to a reduction in the number of vehicles on the road given the restrictions that were in place in recent months. Motor tax is not linked to the level of use on the road, rather it accrues to the Exchequer as an excise duty. Motor tax receipts are a significant contributor to Exchequer finances and form part of the means in ensuring that Covid-19 supports can continue in the short-term, in helping the re-building of the economy and in ensuring the ongoing provision of public services. In this regard, the Deputy will be aware that the Government has channelled significant Exchequer resources towards the introduction of an extensive range of supports for Covid-impacted businesses, including rates waivers, re-start grants, lending facilities, equity injection, business advisory supports, and, in recent weeks, supports for businesses impacted by local lockdowns. In terms of social protections, resources have been allocated to the continuation of the Pandemic Unemployment Payment and Wage Subsidy Schemes into next year.
