Dáil Éireann Debate, Wednesday - 11 February 2026
14. Deputy Pearse Doherty asked the Minister for Transport the estimated cost of scrapping the unfair surcharge on people paying motor tax in instalments; and if he will make a statement on the matter. [11059/26]
Amharc ar fhreagraWhile 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. The differential takes account of the extra administrative costs in Motor Tax offices and the Department of Transport (which operates the online motor tax facility) 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.
