Minister should look at scrapping motor tax system

13 October 2011

Statement by Eamonn Maloney TD

The Labour Party TD for Dublin South West, Eamonn Maloney has called for the scrapping of the motor tax collection system and its replacement by a "Pay as you drive" system.

"All Local Authorities are experiencing major shortages in their budgets and a not insignificant amount is due to shortages in the motor tax accounts. The present antiquated collection system gives rise to considerable evasion, is very costly to administer, utilises valuable and scarce Garda resources and the lump sum method of payment is difficult for many people to organise in this economic period.

"More importantly it is essentially an unfair system in that car owners pay the same amount of tax for the same car classification regardless of the mileage or road usage.

"I have asked the Minister for Transport who is preparing a new Motor Tax Bill, to examine the possibility of scrapping the old system and replacing it with a 'Pay as you Drive' system by including the tax within the price of motor fuel.

"This would be a fairer system for all vehicle owners. It would cut down dramatically on motor tax evasion and would provide substantial savings to the state."

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