Written answers

Tuesday, 28 February 2012

Department of Environment, Community and Local Government

Motor Taxation

8:00 pm

Photo of Luke FlanaganLuke Flanagan (Roscommon-South Leitrim, Independent)
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Question 462: To ask the Minister for the Environment, Community and Local Government if he will introduce a monthly instalment payment option for motor taxation, thus affording 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 years 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]

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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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.

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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