Michelle Mulherin (Fine Gael) | Oireachtas source

I wish to raise the issue of our archaic and discriminatory motor tax system. It is years old and not fit for purpose. It militates, in particular, against those on low incomes or whose personal finances are stretched. People who are renewing their motor tax and wish to pay by instalments, which people who are on a tight budget often wish to do, end up paying more over the course of the year than they would if they paid in one lump sum. I was speaking to a person who had the option of paying their motor tax on a three-monthly, a six-monthly or a 12-monthly basis. They pay it on a three-monthly basis and, therefore, end up paying €170 more. It is obvious that, unless someone is leaving the country or not using the vehicle anymore, in most cases people are paying it in instalments due to the financial pressures they are under.

Another motor tax issue that was brought to my attention concerns a vehicle that has been put off the road. There was a big problem with petrol stretching in my constituency of County Mayo and many vehicles were destroyed. The owners could not get a refund of motor tax, even if their vehicles were off the road, unless there were at least three months left to run on the motor tax. This hits people who can ill afford to be hit in this way.

There is a big disparity in the amount of motor tax paid on vehicles registered after July 2008 and those registered before that, even those with the same engine size. A person might pay €180 to tax a 1.6 litre vehicle while another would pay in or about €500 due to the age of the vehicle. I understand the rationale behind it, and that it is designed to encourage people to buy vehicles with lower emissions. The reality, however, is that it requires people to buy newer, if not new, vehicles, and not everyone can afford to do so. People with older vehicles are shouldering this cost even if they are not using the road as much as someone with a newer vehicle.