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Dublin: 14 °C Thursday 9 July, 2020

This is how the State still makes money from vintage cars

Vintage cars and motorcycles pay less motor tax, but does it all add up?

Image: Eamonn Farrell/Photocall Ireland

IRELAND WILL TAKE in around €2.1 million this year from tax paid on vintage cars.

Environment Minister Alan Kelly told the Dáil last month that the low-rate tax rates would bring in over €2 million.

A ‘vintage’ vehicle for motor taxation purposes is a vehicle that is 30 or more years old.

Responding to a question from Sinn Féin’s Brian Stanley, Kelly said that final figures are not yet available.

“I expect that receipts from motor tax on vintage vehicles for 2014 will be of the order of €2.1m, though final figures will not be available until after the year end. I have no plans to reduce or abolish the current favourable motor tax rates applied to vintage vehicles.”

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The rates for the yearly, half yearly and quarter-yearly taxing of cars is low, Kelly says, because of their limited use.

“Concessionary rates of motor tax for vintage vehicles have been in place since 1991. The low rate of tax reflects the fact that vintage vehicles may be in limited use on the roads.

The rates were initially set at £10 (€13) for motorcycles and £25 (€32) per annum for all other vintage vehicles. The current rates are €26 per annum for motor cycles and €56 for all other vehicles.

Read: Dublin City Council to close motor tax offices to deal with licence backlog

Read: Postmasters say that moving motor tax to post offices would save €27 million

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