Tom Fleming (Kerry South, Independent)
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Question 104: To ask the Minister for the Environment, Community and Local Government if he will accommodate motorists in County Kerry who are experiencing exceptional financial hardship by allowing them to pay their motor tax on a monthly basis rather than the current minimum period of three months; and if he will make a statement on the matter. [29978/12]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I have no plans currently to introduce a monthly payment option for motor tax. The current half-yearly and quarterly payment options incorporate a surcharge to cover the higher administrative costs involved in processing such applications. The estimated annual income from the increased charges for half-year and quarterly vehicle licences is in the region of €20m. Were a monthly pro-rata system to be introduced, the loss in income would have to be compensated for elsewhere in the motor tax system, or through the taxation system generally. It would also have a negative transitional impact on the flow of income to the Local Government Fund and consequently on grant allocations to local authorities from the Fund. In considering options for a monthly payment option, regard would also have to be had to the set-up costs in the motor tax system, and increased ongoing administrative and financial costs and controls.