Parliamentary Question for the Minister for the Environment, Community and Local Government (Phil Hogan TD)
For WRITTEN ANSWER on 25/03/2014
To ask the Minister for Environment, Community and Local Government if he will consider reducing the cost differential which arises when paying motor tax quarterly as compared to the cost of paying by a single annual payment; and if he will make a statement on the matter.
Motor tax is payable on an annual, half-yearly or quarterly basis. The rates of duty applicable for half yearly and quarterly options are 55.5% and 28.25% of the annual charge respectively. This additional cost element takes account of the extra workload for staffing in motor tax offices and the National Vehicle and Driver File, and the resultant administrative costs and printing costs that arise, including the issuing of renewal notices.
The estimated annual income from the increased charges for half-yearly and quarterly vehicle licences is in the region of €50m. A loss in income from this source would have a negative impact on the Local Government Fund and consequently on grant allocations to local authorities from the Fund, and would have to be borne elsewhere in the motor tax system, or through the taxation system generally. I have no plans to adjust the basis for paying motor tax on a half-yearly or quarterly basis.