Written Answers - Motor Taxation Tuesday, 28 February 2012

Dáil Éireann Debate Vol. 757 No. 1 Page of 540

  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]

Minister for the Environment, Community and Local Government (Deputy Phil Hogan):    There are no plans to introduce a monthly instalment payment option for motor tax.

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.

[263]With regard to the remaining points raised in the question, I refer to the reply to Question No. 429 of 21 February 2012.

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Last Updated: 08/03/2013 15:47:06

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