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THE GOVERNMENT MAKES over €1 billion annually on motor tax.
Every year since 2010 has seen 2.4 – 2.5 million vehicles registered.
On 1 July next it will be two years since the motor tax off-the-road rules became law.
Environment Minister Alan Kelly revealed the figures in the Dáil recently, in response to a parliamentary question from independent TD Mattie McGrath.
Kelly noted there have been two budgetary increases in the last five years. These took effect from 1 January 2012 and from 1 January 2013.
As such, 2014 is the first full year since the introduction of the new system of declaring vehicles off the road in which budgetary increases did not impact on receipts.
Gross motor tax receipts for 2014, at €1.159 billion, increased by €41 million (3.65%) on 2013 (€1.118 billion).
“In the absence of a motor tax rate increase, a reduction in receipts would otherwise have been expected given the ongoing changeover of the car fleet to the CO2 based system, which carries a lower average tax.
“Since the introduction of the CO2 based system, there has been a reduction in receipts in each year where no budgetary increases were applied – receipts fell from €1.057 billion in 2009, the first full year of the CO2 based system, to €1.023 billion in 2010 and to €1.010 billion in 2011,” Kelly said.
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