Pauline Tully (Cavan-Monaghan, Sinn Fein)
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456. To ask the Minister for Finance the amount it would yield if the late registration fee of 0.1% was increased to 0.5% for each day over 30 days for which a vehicle remain unregistered for vehicle registration tax based on 2022 figures. [38243/23]

Michael McGrath (Cork South Central, Fianna Fail)
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In general, vehicles must be registered within 30 days of entering the State, and Vehicle Registration Tax is assessed and payable at the time of registration. Section 132 of the Finance Act, 1992 provides that an additional charge applies where a vehicle is unregistered after the date registration is required by law, or where a payment or part payment remains outstanding after the same date.

The law provides that this additional charge is calculated as the amount of VRT outstanding multiplied by 0.1%, multiplied by the total number of days that have passed between the date the vehicle enters the State and the date it is registered. This charge applies only where registration takes place after the required last date of registration set down in law, which is to say it applies only where the 30-day period for registration after a vehicle enters the State, where applicable, has expired.

In 2022, Revenue collected €1,009,810 in relation to this additional charge. Had the rate been 0.5% per day (instead of the 0.1% rate set down by law), the receipts for 2022 would have been approximately €5 million (i.e. 5 times higher), assuming no behavioural change.