Billy Kelleher (Cork North Central, Fianna Fail)
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488. To ask the Minister for Environment, Community and Local Government if his attention has been to drawn to the €159 extra cost to tax a seven seater car for the year when paid in two six month payments (details supplied); his views on this matter. [43840/14]

Alan Kelly (Tipperary North, Labour)
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Motor tax is payable on an annual, half-yearly or quarterly basis. The rates of duty applicable for the half-yearly and quarterly options are calculated at 28.25% and 55.5% of the annual rate respectively. The number of seats in a vehicle is not a determinant in arriving at the non-annual rates.

This additional cost element takes account of the extra workload for staff in motor tax offices and the National Vehicle and Driver File unit, and the resultant administrative costs and printing costs that arise, including the issuing of renewal notices.

The estimated annual income from the increased charges for half-yearly and quarterly vehicle licences is in the region of €50m. A loss in income from this source would have a negative impact on revenue and would have to be borne elsewhere in the motor tax system or through the taxation system generally. I have no plans currently to adjust the basis for paying motor tax on a half-yearly or quarterly basis.