Written answers
Tuesday, 27 July 2021
Department of Transport, Tourism and Sport
Tax Code
Gerald Nash (Louth, Labour)
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208. To ask the Minister for Transport, Tourism and Sport his plans to reform the calculation method for quarterly, half-yearly and annual charging for motor car tax; his views on whether the system unfairly and excessively overcharges those motorists in the lower income brackets that avail of the quarterly or half-yearly charge; and his plans to reform the motor car tax system. [39884/21]
Gerald Nash (Louth, Labour)
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209. To ask the Minister for Transport, Tourism and Sport the estimated cost to the Exchequer of ending the additional charge on quarterly and half-yearly motor tax payments; and if he will make a statement on the matter. [39936/21]
Hildegarde Naughton (Galway West, Fine Gael)
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I propose to take Questions Nos. 208 and 209 together.
Motor tax is payable on an annual, half-yearly or quarterly basis. The rates applicable to 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 1960's.
The loss to the Exchequer arising from the elimination of the additional charge for these options has been estimated at just under €41.3m, based on the volume of transactions in 2020. 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.
In terms of reform of the motor tax system, adjustments to motor tax rates and changes to the structure of the motor tax system are generally made in a Budgetary context and are a matter for consideration as part of Budget preparations.
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