Aidan Farrelly (Kildare North, Social Democrats)
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164. To ask the Minister for Transport, Tourism and Sport the rationale for charging persons more for periodic payments of motor tax over single payments in full and if he will set out his plans to end this practice. [7074/25]

Darragh O'Brien (Dublin Fingal East, Fianna Fail)
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Motor Tax is payable on an annual, half-yearly or quarterly basis. There is an additional charge associated with both the half-yearly and quarterly discs. In relation to motor tax paid for 3 months or 6 months the charges are set out in Statutory Instrument No. 385/1992, as amended.

Regulation 26(1) of that S.I. reads as follows:

26(1) A licence may be taken out under Section 1 of the Act of 1952 for a period of three months or six months ending on the last day of any month in respect of a vehicle (not being a vehicle on which duty is chargeable at an annual rate which is less than €114) on payment of an amount equal to 28.25 percent or 55.5 percent, respectively, of the full annual rate of duty.

The differential takes account of the extra workload for staff in motor tax offices and the Driver and Vehicle Services Division (which operates the online motor tax facility) and the additional costs associated with the processing of non-annual motor tax including the printing and posting of additional motor tax discs and 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.

The loss of income 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. Any proposed change is a matter for consideration in the context of Budget preparations.