Reform of Motor Tax?

Mayo Exile

With the Green Party now in government, what are the chances for Motor Tax being reformed? Wasn't Dick Roche saying that Motor Tax from 2008 onwards would be linked to emissions awhile ago? Do people think the system should be reformed? What will replace it?

My own opinion is that motor tax should be scrapped and the subsequent revenue loss balanced by an increase in excise duty on petrol so those that drive the most pay the most. Its ridiculous that say, a pensioner who might use his/her car to nip down to the local shop twice a week should pay the same rate as someone doing 50,000 miles a year!

m_stan

Mayo Exile wrote:

With the Green Party now in government, what are the chances for Motor Tax being reformed? Wasn't Dick Roche saying that Motor Tax from 2008 onwards would be linked to emissions awhile ago? Do people think the system should be reformed? What will replace it?

My own opinion is that motor tax should be scrapped and the subsequent revenue loss balanced by an increase in excise duty on petrol so those that drive the most pay the most. Its ridiculous that say, a pensioner who might use his/her car to nip down to the local shop twice a week should pay the same rate as someone doing 50,000 miles a year!

I'd imagine the chances of it being reformed are even greater now that the Greens are in.

However, while I agree with you, there's no way anybody's going to be scrapping a tax. When in the history of the state has a tax of any description ever been binned ? They may add to excise duty alright, but it won't be as a result of motor tax being canned. I'd bet a months wages on that one.

cold_filter

m_stan wrote:

I'd imagine the chances of it being reformed are even greater now that the Greens are in.

However, while I agree with you, there's no way anybody's going to be scrapping a tax. When in the history of the state has a tax of any description ever been binned ? They may add to excise duty alright, but it won't be as a result of motor tax being canned. I'd bet a months wages on that one.

They wont bin it. they may reduce it but then they'll just put up the duty on petrol and then the retailers will add on a few cents to lien their own pockets

Owen

I'm terrified of this. It's politically incorrect at the moment to be a car enthusiast, or to drive a large engine (read 3 litre +) vehicle. I hope that our hobby isn't priced out of our range anymore.

Mayo Exile

Agreed. No tax is ever scrapped. However using Dept. of Finance speak, it could be "replaced" or countered by a "revenue neutral" measure. Would the Greens like to replace car tax by lumping it on petrol to avoid revenue loss? This would go someway to introducing "Polluter Pays" principles. Aren't the British government tinkering around with "pay per mile" schemes where car tax would be superceded by these schemes.

mike65

In UK every car will be black-boxed I belive and you'll be charged appropriatly.

Mike.

OTK

m_stan wrote:

When in the history of the state has a tax of any description ever been binned ?

Off the top of my head: residential property tax, residential rates, fishing rod tax, car tax in 1977, (reintroduced in 1979), wealth tax abolished in 1977. I'm sure there are many more.

m_stan

OTK wrote:

Off the top of my head: residential property tax, residential rates, fishing rod tax, car tax in 1977, (reintroduced in 1979), wealth tax abolished in 1977. I'm sure there are many more.

damnit, I knew as soon as I posted that I'd be proven wrong ! fair crop. but I still don't think motor tax will be axed, even if excise duty compensates for the loss. it's a money-spinner, and unless it becomes a huge political football like Stamp Duty did, then it'll stay.

D'Peoples Voice

Mayo Exile wrote:

With the Green Party now in government, what are the chances for Motor Tax being reformed?.

I'd imagine they wil just implement the recent white paper
see page 40
http://www.dcmnr.gov.ie/NR/rdonlyres/B0D3D168-3DCD-43E9-8D87-F4666239049F/0/EnergyWhitePaper12March2007.pdf

Tipsy Mac

I think scrapping road tax and putting 5 or 10c on a litre of petrol is by far the best solution. I think taxing on emissions would be grand if the earth had an unlimited supply of oil and we were only concerned about pollution/climate change but the fact is if a car is only doing 20 miles or less on a gallon of fuel it is wasteful of oil as a resource. Increasing the cost of fuel will make people purchase cars which consume less fuel or will make them think twice about travelling journeys which are unnecessary.

E92

The responsibility of Motor Tax is now in the hands of the Department of Transport and the Marine(where theres a Fianna Fail Minister), not the Department of the Enviornment(where there is a Green Minister). So I doubt that there will be anything too radical or anti car when the change takes place. And anyway, ewven if the Greens were in control of it, why would you worry, after all they have sacrificed so much to get into power, so I dont see how they are going to implement even a fraction of their policies.

Victor

Potentially, and assuming fuel prices are goping up, they either
(a) remove it completely,
(b) bring it in line with emissions
(c) flat rate it and link it to something else - running the registration system, a new source of revenue for say the RSA / NRA, etc.