Written answers

Tuesday, 18 December 2012

Department of Environment, Community and Local Government

Motor Taxation

Photo of Tom FlemingTom Fleming (Kerry South, Independent)
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To ask the Minister for Environment, Community and Local Government if he will consider introducing a system whereby persons who wish to tax their car, may do so on a monthly basis, rather than the minimum three months requirement that is proving increasingly difficult for households; if he will take into consideration the fact that the recently proposed 15% increase in motor tax in Budget 2013, will make it impossible for many households to pay this tax on a quarterly basis; and if he will make a statement on the matter. [56609/12]

Photo of Phil HoganPhil 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.

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