Report of the Local Government Efficiency Review Group

Table 10.1 – Motor Taxation Classes, 2009
Taxation Class Number %
Private Cars 1,902,429 77.09
Goods Vehicles 343,940 13.94
Agricultural & General Haulage Tractors 67,503 2.73
Motorcycles 39,552 1.60
Public Service Vehicles 36,840 1.49
Exempt Vehicles 26,954 1.09
Vintage Vehicles 22,891 0.93
Motor Caravans 10,294 0.42
Other 17,257 0.70
Total 2,467,660 100.00
Source: Department of Transport
10.6.6 Motor tax can be paid quarterly, half yearly or annually. Service indicator
data show that in 2008 there were a total of 5.1 million motor tax
transactions of which 2.7 million (53%) were dealt with over the counter,
0.80 million (16%) through the postal system, and 1.6 million processed
online (just over 31%). It should be noted that the 3.5 million motor tax
transactions for motor tax offices includes tax discs, arrears and other
relevant transactions where payment was made, where as the online figure
of 1.6 million transactions includes tax discs only and excludes arrears.
Details for each county are given in Appendix 10.
10.6.7 The rates charged for each vehicle class are critically important. The
introduction of the new CO2 emission based charging system has had the
effect of diluting income as consumers have switched purchases
significantly towards low emission cars which attract low rates of motor tax –
around 84% of new car purchases are in the lower A, B and C bands. This
is an area which requires continuous monitoring. The motor tax base
income will continue to decline if charges are not adjusted annually to
ensure the new charging regime has a neutral effect on revenue. This
effect will be further compounded as electric cars are more widely
introduced.
10.6.8 The uptake in online renewal has not reached its full potential. Most local
authorities provide free Internet access in their libraries and in their county
buildings. Renewal through the Internet is the most efficient method of
delivery. From Appendix 10 it can be seen that only Dublin city and Kildare
have more than 40% processed online, with only Meath, Wicklow and Cork
county and city achieving more than 30%.
10.6.9 These figures are however based on total transactions. A difficulty arises
from the fact that not all vehicles can be taxed using the online system. If
the uptake is measured against eligible business there is an encouraging
trend. The online system reached 51% of eligible business and 43% of
overall business in January-February 2010, compared to 44% and 39%
respectively for the same period last year. Nevertheless, a greater uptake
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