Report of the Local Government Efficiency Review Group

of the online service should be incentivised, for example through the
introduction of a small handling fee (such as €10) to reflect the greater cost
accruing to local authorities of processing payments manually (either over
the counter or by post), and to encourage greater take-up of the online
service. If successful of course, the income coming from this fee would be
expected to decline over time.
10.6.10 The motor tax classifications which are eligible to avail of the online service
are private cars, agricultural tractors/ excavators, motorcycles, exempt
(special vehicle), vintage/ veteran and motor caravans. The online system
accounts for 84% of all taxation classes. Goods vehicles are charged
based on unladen weight which is determined by a number of subjective
tests. In order to be included in the online system simplification of the
classification system is required.
10.6.11 The Group suggests that the production of Certificates of Roadworthiness
should not be required for motor taxation purposes. These certificates
should be dealt with by the Road Safety Authority in the same manner as
NCT tests for private cars. The simplest way for goods vehicles to be taxed
is by gross design weight.
10.6.12 The Group believes that consideration should be given to extending the
online system to include commercial and other vehicles. If commercial and
other vehicles could be processed online, the uptake is likely to be
significantly higher than those for private cars – on the basis of a 60%
uptake in Internet use for this category, this would transfer some 293,000
transactions to the online system. It will also improve customer service for
businesses which will have the more convenient option of renewing motor
tax online on a 24/7 basis.
10.6.13 Under existing rules where a vehicle has not been in use in a public place
the applicant can obtain relief from tax by getting the form signed and
stamped in a Garda station confirming the signature on the declaration of
non use. It should be noted that the Garda Síochána do not have a role in
ensuring the validity of the declaration. The system is therefore open to
significant abuse. This “off-the-road” facility is generating approximately
396,000 declarations per annum and is currently costing up to €75 million.
While provisions could be made in relation to a restricted number of
exceptional circumstances which should be defined in legislation, removal of
this facility would close off a potential loophole that is open to abuse, would
broaden the tax base, and would reduce the number of transactions to be
processed. It should also lead to non-quantifiable savings in Garda time.
10.6.14 Driving licences are also issued by the motor tax offices and accounted for
664,330 transactions in 2008, equivalent to 15.89% of the overall
transactions of motor tax offices. The issuance of a driving licence is a
complex matter and as a result consumes a significant amount of human
resource. The process involves document verification, photographic
verification and security checks. The widespread use of driving licences as
a valid form of personal identification necessitates thorough attention to
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