Frank O'Rourke (Kildare North, Fianna Fail)
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178. To ask the Minister for Transport, Tourism and Sport his plans to review the motor tax payment system (details supplied); and if he will make a statement on the matter. [9102/18]

Shane Ross (Dublin Rathdown, Independent)
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Motor tax is payable on an annual, half-yearly or quarterly basis.  The rates applicable for the half-yearly and quarterly options are 55.5% and 28.25% of the annual charge, respectively. These relativities have remained generally consistent since the 1960s. 

The differential takes account of the extra workload for staff in motor tax offices and the Driver and Vehicle Computer Services Division (which operates the motor tax online facility) in processing non-annual renewals, as well as the resultant administrative and printing costs that arise, including the issuing of renewal notices.  Each quarterly renewal of motor tax follows the same administrative procedures as the annual renewal process.  Consequently, renewing on a quarterly basis generates four times the workload of an annual renewal for the equivalent period.

Based on the number of motor tax transactions in 2017, the annual cost of abolishing the additional charge associated with the half-yearly and quarterly options would be in the order of €52.7m.  The loss of income that would arise from changing these arrangements would have a negative impact on the total collected via motor tax and would have to be borne elsewhere in the motor tax system or through the taxation system generally. 

I have no plans currently to review the basis for paying motor tax on a half-yearly or quarterly basis.