Tax Yield

Thursday, 19 February 2026

Questions (250)

Pa Daly

Question:

250. Deputy Pa Daly asked the Minister for Transport the cost of equalising rates for three and six month motor tax payments with the rate of the 12-month payment. [13947/26]

View answer

Written answers

Minister of State at the Department of Transport

While the collection of Motor Tax is managed by my Department, the setting of the rates and the surcharge is determined by the Minister for Finance.

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.

The differential takes account of the extra workload for staff in Motor Tax offices and my Department (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.

The loss to the Exchequer arising from the elimination of the additional charge for these options has been estimated at just under €35m based on the pattern of transactions in 2025 and would have to be borne elsewhere in the tax system.

As the Deputy may be aware, it is intended to remove the requirement for paper discs for Motor Tax later this year. Once that this is in place, it may be appropriate to review the position regarding the surcharge.

Question No. 251 answered with Question No. 247.

Question No. 252 answered with Question No. 247.

Question No. 253 answered with Question No. 247.