Tuesday, 28 February 2012
Dáil Éireann Debate
462. Deputy Luke ‘Ming’ Flanagan asked the Minister for the Environment, Community and Local Government if he will introduce a monthly instalment payment option for motor taxation, thus that those who wish to tax their car for a year can do so by monthly instalments and can gain the benefit of the lower tax charge applied to the purchase of a full year's car tax; his views that the difference between the rate paid for car tax on a three monthly basis and on a one year basis is now much greater than in the past and that it now hits those who are on lower incomes harder than in the past; and if he will make a statement on the matter. [10837/12]
The rates of duty currently applicable to half-year and quarterly discs are 55.5% and 28.25% of the annual rate respectively. These relativities have remained generally constant since the 1960s, although they were reduced to 55% and 27.5% respectively in the period between 1992 and 2001.
The estimated annual income from the increased charges for half-year and quarterly discs is in the region of €20m. Were changes to be introduced to charge for these discs on a pro-rata basis, the loss in income would have to be compensated for elsewhere in the motor tax system, or through the taxation system generally.
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