Question to the Minister for the Environment, Community and Local Government (Deputy Alan Kelly)
To ask the Minister for the Environment, Community and Local Government if he will reduce the cost differential which arises when paying motor tax quarterly as compared to the cost of paying a single annual payment; and if he will make a statement on the matter. – Jerry Buttimer.
For WRITTEN answer on Tuesday, 18th November, 2014.
Motor tax is payable on a quarterly, half-yearly or on an annual basis. The rates of duty applicable for the quarterly and half-yearly options are 28.25% and 55.5% of the annual charge respectively. This additional cost element takes account of the extra workload for staff in motor tax offices and the National Vehicle and Driver File unit, 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 quarterly and half-yearly vehicle licences is in the region of €50m. A loss in income from this source would have a negative impact on revenue and would have to be borne elsewhere in the motor tax system or through the taxation system generally.
I have no plans currently to adjust the basis for paying motor tax on a quarterly or half-yearly basis.