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Tax Code

Dáil Éireann Debate, Wednesday - 3 July 2024

Wednesday, 3 July 2024

Questions (60)

Paul Donnelly

Question:

60. Deputy Paul Donnelly asked the Minister for Transport the reason the motor tax office is charging more for the motor tax if it is paid quarterly or twice a year, while we are still in a cost-of-living crisis. [28467/24]

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Written answers

Motor tax is charged in accordance with the law and the rates are a Budgetary matter for the Minister for Finance. In relation to motor tax paid for 3 months or 6 months the charges are set out in S.I. 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.

These additional changes for motor tax paid for 3 or 6 months have remained generally consistent for many years. 

It is not unusual for additional charges to apply when paying for a smaller quantity of something or conversely for a reduction to be applied when paying for a longer period up front. Each half-yearly or quarterly renewal of motor tax involves the same administrative costs as the annual renewal process.

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