Written answers

Tuesday, 10 May 2022

Department of Transport, Tourism and Sport

Tax Code

Photo of Emer HigginsEmer Higgins (Dublin Mid West, Fine Gael)
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237. To ask the Minister for Transport, Tourism and Sport the reason that a person paying their motor tax in three-or six-month intervals will pay more over the course of a year when compared to a person paying in one yearly lump sum; if he has considered addressing this matter in the context of the rising cost of living; and if he will make a statement on the matter. [23185/22]

Photo of Hildegarde NaughtonHildegarde Naughton (Galway West, Fine Gael)
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Motor tax can be paid on an annual, half-yearly or quarterly basis. The rate applicable to the half-yearly option is 55.5% of the annual rate, and, for the quarterly option, 28.25% of the annual rate. These ratios have remained generally consistent since the 1960's. The loss of income that would arise from equalising rates for these options would have a negative impact on motor tax revenue and would have to be borne elsewhere in the motor tax system or in the taxation system generally. The potential loss to the Exchequer has been estimated at just over €37m, based on the volume of transactions in 2021. Given the sum involved, any proposed change is a matter for consideration in the context of Budget preparations.

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