Written answers

Tuesday, 15 May 2018

Department of Transport, Tourism and Sport

Motor Tax Rates

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein)
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487. To ask the Minister for Transport, Tourism and Sport the estimated cost of abolishing the charge of an excess in circumstances in which a vehicle is taxed for less than 12 months, that is, motor tax being more expensive when charged for six months as opposed to 12 months. [21220/18]

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein)
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488. To ask the Minister for Transport, Tourism and Sport the estimated cost of changing the rates applicable for the half-yearly and quarterly options for motor tax renewal from 55.5% to 51% for a half and 26.25% for a quarter of the annual charge. [21221/18]

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein)
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489. To ask the Minister for Transport, Tourism and Sport the estimated cost of changing the rates applicable for the half-yearly and quarterly options for motor tax renewal from 55.5% to 50.5% for a half and 26% for a quarter of the annual charge. [21222/18]

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein)
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490. To ask the Minister for Transport, Tourism and Sport the estimated cost of changing the rates applicable for the half-yearly and quarterly options for motor tax renewal from 55.5% to 50.25% for a half and 25.5% for a quarter of the annual charge. [21223/18]

Photo of Shane RossShane Ross (Dublin Rathdown, Independent)
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I propose to take Questions Nos. 487 to 490 together.

Motor tax taken out on a half-yearly and quarterly basis is charged at 55.5% and 28.25% of the annual rate respectively.

Each half-yearly and quarterly renewal of motor tax requires the same administrative procedure as the annual renewal process. Any consideration of abolition or re-balancing of the charge for non-annual discs must take account of the fact that overheads, both direct and indirect, would increase exponentially if this were to result in increased volumes of transactions.

Aside from these costs, the estimated annual cost to the Exchequer of abolishing the excess charge for the half-yearly and quarterly options is €52.7m.

The estimated cost of changing the additional charge applicable to the half-yearly and quarterly options to 51% and 26.25% respectively is €36m annually. Changing to 50.5% and 26% respectively would cost €41.6m. Changing to 50.25% and 25.5% respectively would cost €46.4m.

All estimates are based on the number of half-yearly and quarterly transactions in 2017.

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