TheJournal.ie uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Click here to find out more »
Dublin: 18 °C Wednesday 19 June, 2013

Payment plan option for motor tax not being considered

Minister Phil Hogan has ruled out the introduction of a monthly instalment payment option.

Image: James Horan/Photocall Ireland

THE MINISTER FOR Environment, Community and Local Government has said that there are no plans to introduce a monthly instalment option for motor tax payments.

Responding to a question posed by deputy Luke ‘Ming’ Flanagan in the Dáil, Phil Hogan said the State earns about €20 million from increased charges for half-year and quarterly discs.

Motor tax can currently be purchased on a full year basis or every three or six months. The rate of duty applied to half-year discs is 55.5  per cent and for quarterly discs it is 28.25 per cent of the annual rate.

Hogan said these relatives have remained the same since the 1960s except for a period in the boom years when they were reduced slightly.

The Minister said if the charges were to be changed, the loss in income to the State would have to be compensated for elsewhere in the general taxation system.

Flanagan had argued that the rates paid for half-year and quarterly discs are hitting those on lower incomes harder than in the past. He proposed that taxpayers could pay in monthly instalments but still benefit from the less expensive annual fee.

Previously, Hogan has said that the higher rates are charged to “take account of the extra workload for motor tax offices” in terms of administration and printing.

Under law, the rates could actually be higher as the Finance Act of 1952 provides that the rate of duty for a quarterly licence could be up to 30 per cent of the full-year price.

More: Backbencher calls for examination of scrapping motor tax>

  • Share on Facebook
  • Email this article
  •  

Read next:

Comments (40 Comments)

  • Not to worry, with the extortion prices of fuel and dwindling incomes, we’ll all be walking soon.

    Reply
  • made 05/03/12 #

    Phil Hogan is nothing more than an arrogant bastard who doesn’t give a crap about the lower income people, again another piece of evidence that ministers in this government are so far removed from what life is like on low incomes they might aswell be on the moon. The sooner this government is ousted the better it’ll be for everyone. I live in a rural area and with the price of fuel and motor tax it’s coming close to being better off giving up my job and signing on.

    Reply
  • The whole thing is a farce anyway.

    The money paid by people to tax their cars in Ireland is ludicrous and not one red cent of it goes to improving the road system, poilcing of the road system or any other intiative to make driving safer in Ireland…hence the reason they call it motor tax and not road tax.

    It looks like we are about to get shafted on this again by FG this time. I have had dialogue with my local TD and they have said that although Phil Hogan has made no decisions yet I think it may be a foregone conclusion that yet again John Q. Taxpayer is going to have to bend over and take it once again.

    The situation is simple…the government need as much tax revenue as they can squeeze out of the taxpayer and they are studying every single way they can do it. Despite the fact that those in work or trying to find work will not be able to afford to run a car and the public transport system outside Dublin 1 & 2 is a joke. Thats also not taking into account all those in the more rural areas who depend on their own transport for freedom of movement.

    All this will lead to is people not paying the tax on their cars…because they can’t afford to.

    Reply
  • The whole system of car taxing is a joke, it is simply a method of creating jobs in the motortax offices throughout the country. A much fairer, less costly and a less administration intensive way is to include motor tax within the price of petrol. You pay for whatever you use, it will also capture those visiting the country. It will stop the need for prosecuting those evading motortax, thereby freeing up Garda and Court time.

    Reply
    • Because there is not enough tax on fuel as it is!!!

      Reply
    • You are missing the point. Of course its not nice to impose further taxes on anything, let alone fuel. But in return you have cut out the cost of running the motortax office, the cost of garda time on checking motortax fines and prosecutions. Plus those visiting the country with their car, truck etc.., will also contribute. Given that you cut out all of those costs you don’t need to impose such a high tax to pay for those things, as those costs are gone! It is much fairer in that you pay for what you use, the more you drive the more you pay, the higher the consumption the more you pay etc…

      Reply
    • While I agree with you in theory, this idea will disproportionately hit rural dwellers more so than city dwellers…

      Reply
    • Totally agree with you Jack, those who use it most pay most makes perfect sense. Just like those with expensive homes pay proportionately more in household tax. But sense and Government don’t really go hand in hand.

      Reply
    • Problem there though is we have a land border with another jurisdiction; price it too high & punters will go North to fill up; also diesel laundering will increase.

      Reply
    • Obvioiusly those who have to rely on their cars will pay more, which impacts on those living in rual areas. However, you could say the Stamp Duty on purchasing a house is disproportionale too, in that the cost of purhasing a house is much more for those living in a city or town, than those living in the arsehole of nowhere! Thereby they have to pay more stamp duty. Under the Troika agreement we are required to cut the costs of our inter-governmental departments and councils, this is an immediate cost saving which is not too difficult to impliment.

      Reply
    • And if you travel 90km to get to and from work you pay more yeah… Great idea.

      Reply
    • dbz that is true, but you’re always going to have that problem. Increase VAT, impose minimum pricing on drink, ohh everyone will run to the north for their shopping and drink. This will always happen especially around the boarder counties, and anything you do will not change this. But with currency exchange rate differences it doesn’t always make sense to travel north for such things. People living outside of the boarder counties are unlikely to be making such trips to fill their car to save a few euro each time.

      I’m not talking about lobbing on a euro or two to the cost of petrol/Dissel. I don’t know what the overall consumption or purchase of fuel is in Ireland. But I can only guess that increasing the cost by 2 or 3 cent will take in as much as currently earned from the motortax system. Without the cost of running a motortax office, the govt are getting in as much revenue in a less costly manner.

      Reply
    • Makes perfect sense so not a hope of it ever happening this country is a fucking joke

      Reply
  • Yet another slap in the face for working class people, from our middle and upper class representatives in Fine Gael.

    Reply
    • Where’s the slap in the face? It has always been the case that paying monthly costs more in terms of motor tax. Basically some people just asked for a reduction, were told no, end of story.

      I see no reason for righteous indignation here. That 20 million would have to be taxed elsewhere, either by spreading it to more prudent motorists, or by making non-drivers pay. I fall into the category of motorists who pay the full amount once a year.

      The reductions for full year payments can easily be seen as an incentive to pay up front, rather than a punishment for paying quarterly.

      Reply
    • Dave 05/03/12 #

      Oh sorry, do only working class people pay road tax? newsflash for you – everyone in this country is squeezed, but clearly the chip on your shoulder has got in the way of your eyes…

      Reply
    • David 05/03/12 #

      Yes Rónán, you are correct. But you are on a thread here that is full of leftie moaners who are not representative of common sense or of the whole of the population.

      Reply
    • Jambbie 05/03/12 #

      @ronan
      The precise reason the Q was asked to the minister is that many people have not got enough money at one particular time of year to pay 12 months in 1 go.

      @dave
      a)Read above & b) I’ll gladly remove the chip from my shoulder when cronies don’t run the country, until then chip fairly cemented in place.

      Reply
    • Dave 05/03/12 #

      Labour are in government are they not?

      Reply
  • well theyd wanna fix the roads with the excess 20million euro theyre making cus im sick of driving on bog roads down ere in tipprrary/limerick and busting tyres with state of the hugh potholes

    Reply
  • Let me summarize this Back… Hoagn doesnt give two craps abut those that are struggling the most. In fact, he likes punishing the poorest, by charging more. Why dont all FG/Labour/FF supporters do the country a favor, pull on the green jersey and emmigrate. That will help address the balanced budget issue they keep harping on about. Please, can someone tell me, how this doesnt make economic sense??? We wont have to pay these clowns any welfare etc, so it addresses the welfare payments issue, the Dail members that leave would save the country another few million in excessive wages, and we will be left with folks who really give a crap about the people left.

    Reply
    • “Why don’t all FG/Labour/FF supporters do the country a favor, pull on the green jersey and emmigrate.”

      Well one reason is that according to the latest opinion polls that would involve roughly 70% of the population leaving, including pretty much anyone who is currently paying taxes.

      Or alternatively, you meant to say FG/Labour/FF politicians, in which case you mean government about Sinn Fein and the ULA, and never having to worry about motor tax again, much in the same way as they don’t worry about it in Cuba.

      That’s my favourite thing about the comments on thejournal, they are always so insightful, relevant and logically coherent.

      Reply
  • Its grand for him to say that when his car tax is paid by the tax payer.What is wrong with people paying on a monthly basis. Does the Government ever think that it is not everyone that can pay up front for the year.

    Reply
  • How come Bord Gais, and others incentivise the consumer, by offering lower unit rates to those who pay by direct debit monthly. It is all done automatically, with no need for additional admin. surely an online application, with simple account details would allow for this. If there is an anomaly in the system, fix the system, and facilitate the customer. If the tax goes up slightly all round by the removal of the quarterly/biannual charges, these can be spread across the entire driving population. Surely those who have the annual amount to pay in one go, won’t mind, and those who are budgeting get the fairest deal.

    Reply
  • Don’t worry guys.

    The government will force you to emigrate and you will get your car tax cheaper in real economies like Australia and Canada.

    Reply
  • jimbo 05/03/12 #

    Stick your tax you no where and you want a YES vote ha never you have guaranteed yourselves a NO….now

    Reply
  • Road tax, in addition to raising revenue, also enables the State to keep track on vehicle ownership, which is important for a variety of reasons.

    The taxation system, by combining an annual road tax with a tax on fuel strikes a reasonable balance between usage and ownership. A usage only tax would fall heaviest on rural dwellers where there is less public transport.

    I make no comment on the reasonableness or otherwise on the actual rates of the taxes.

    Reply
    • David 05/03/12 #

      I wouldn’t say “rural dwellers” drive any more than others on average.

      Reply
    • Maybe you wouldn’t but the NRA and the Ministry of Tansport etc would.

      Reply
    • David that is ridiculous, of course rural dwellers drive more. I drive to college everyday, approximately 40 km round trip. If I lived in the town my campus is in, I would either walk or drive one to two km to college. That means that my urban classmates drive approximately 180 km less than me each week to get to college.

      Reply
    • David 05/03/12 #

      Maybe so Ultan. All the farmers, etc walk to work though and many urban dwellers work/study in different town/cities. Also if you travel from one side of a city to the other you wouldn’t be long clocking up 30 or 40 miles per day often in traffic. It would be very hard to quantify but i wouldn’t be taking the governments numbers as gospel.

      Reply
  • I’d say Phil hogan has a shiny 2010-2012 car that he’s is paying 156 road tax a year on.

    Reply
  • Just want to say, I cant wait for the next General Election, those robbing Bxxxxrds that are in power , you will never get back into power again, your policies is not to get us out of the mess that we are in but to keep us broke, you need extra money, here is a few ways to make the savings, your current chairman/woman in the revenue is entitled to a pension pot of over €2,300,000 yes two million 300 thousand , what a scam , and free legal aid drop that and you should save about €2 billion a year, keep hitting the hard pressed taxpayers and be warned we will not always reley on Joe Duffey , we will get up ourselves and bite your Fxxxin heads off, be warned there is only so much of this crap we can take , and as for the Unions in this Country why are you so Silent allowing those thieves to rob s blind

    Reply
  • David 05/03/12 #

    Hogan is correct here. Mings idea is just typical of the ULA. Add more bureacracy to give the local authorities something to do so they can justify their overstaffing levels. It will cost more to administer but sure the “rich” can pay.

    Reply

Add New Comment