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MOTOR TAXES

  • 27-02-2012 4:20am
    #1
    Registered Users, Registered Users 2 Posts: 168 ✭✭


    when we tax a car we are taxed on the emissions now ,,yet when we go to the pumps to fill up we are yet again taxed on emissions from burning the fuel,so arnt the goverment taxing us twice on the same thing and is this not illegal to charge tax twice for the same thing?


Comments

  • Banned (with Prison Access) Posts: 9,425 ✭✭✭FearDark


    VRT

    Taxed three times.


  • Posts: 0 [Deleted User]


    It is illegal, but as we live in Ireland the old adage applies: Sure it'll be grand.


  • Closed Accounts Posts: 750 ✭✭✭Mr.Biscuits


    The only fair system for Road Tax would be to pay it ALL at the pumps.

    That way everyone would pay a proportionate amount of tax based on a system of usage - rather than the current system where some drivers may hardly ever use their car and yet have to pay the same amount as someone who drives each and every day.


  • Registered Users, Registered Users 2 Posts: 168 ✭✭mercenary2


    The only fair system for Road Tax would be to pay it ALL at the pumps.

    That way everyone would pay a proportionate amount of tax based on a system of usage - rather than the current system where some drivers may hardly ever use their car and yet have to pay the same amount as someone who drives each and every day.

    i agree this is what needs to be done ,but who then would line the goverments pockets...

    yes it is a nice house .. 500k you say ,i will take it just put it down to my expenses:)


  • Registered Users, Registered Users 2 Posts: 168 ✭✭mercenary2


    FearDark wrote: »
    VRT

    Taxed three times.

    all a bit diff..

    vrt vehicle registration tax ...only once

    vat value added tax .... only once

    road tax or under new payment emission tax ....twice again at the pump

    but yes to get a new car on the road very expensive ,and to look at it that way you are actualy taxed 4 times before car hits the road,vrt,vat,road tax,fuel tax,or 5 if you include paye .as you would need to earn to afford a new car.


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  • Registered Users, Registered Users 2 Posts: 78,580 ✭✭✭✭Victor


    There are two certainties in life - death and taxes.

    Yes, everyone would like to live longer and pay less, but the realities are that such things aren't sustainable. For the last 15 years we haven't been paying enough taxes. Instead, we borrowed money internationally to sell each other houses which were then improperly taxed and that money was used to fund social programmes. The problem was that the money was ultimately borrowed money.
    mercenary2 wrote: »
    when we tax a car we are taxed on the emissions now ,,yet when we go to the pumps to fill up we are yet again taxed on emissions from burning the fuel,so arnt the goverment taxing us twice on the same thing
    One is a tax on the vehicle, the other a tax on the fuel.
    and is this not illegal to charge tax twice for the same thing?
    How is it illegal?

    On incomes people pay income tax, PRSI and the income levy.

    On beer people pay excise duty and VAT.

    On property, people pay stamp duty and/or VAT and the NPPR charge / household charge.
    The only fair system for Road Tax would be to pay it ALL at the pumps.
    Except for people who live near the border who would just top up there as fuel would then be a fair bit cheaper there. Such a change would mean commercial operators, with high consumption would pay more for their fuel and despite paying a higher rate of tax, the government would get less revenue. It would also facilitate and incentivise people who are laundering diesel.
    That way everyone would pay a proportionate amount of tax based on a system of usage - rather than the current system where some drivers may hardly ever use their car and yet have to pay the same amount as someone who drives each and every day.
    While they may pay the same amount in motor tax, they wouldn't be paying the excise or VAT on the fuel.


  • Closed Accounts Posts: 1,827 ✭✭✭ex_infantry man


    don,t forget toll roads, these are usually public private partnership where the government use our taxes to pay half and then we,re charged as per usage


  • Closed Accounts Posts: 17,733 ✭✭✭✭corktina


    Lets shut down all those expensive schools and hospitals , then we could get rid of all these nasty taxes.:rolleyes:


  • Registered Users, Registered Users 2 Posts: 2,959 ✭✭✭Jesus Shaves


    corktina wrote: »
    Lets shut down all those expensive schools and hospitals , then we could get rid of all these nasty taxes.:rolleyes:

    that's a really good idea


  • Registered Users, Registered Users 2 Posts: 168 ✭✭mercenary2


    Victor wrote: »
    There are two certainties in life - death and taxes.

    Yes, everyone would like to live longer and pay less, but the realities are that such things aren't sustainable. For the last 15 years we haven't been paying enough taxes. Instead, we borrowed money internationally to sell each other houses which were then improperly taxed and that money was used to fund social programmes. The problem was that the money was ultimately borrowed money.
    One is a tax on the vehicle, the other a tax on the fuel.

    How is it illegal?

    On incomes people pay income tax, PRSI and the income levy.

    On beer people pay excise duty and VAT.

    On property, people pay stamp duty and/or VAT and the NPPR charge / household charge.
    Except for people who live near the border who would just top up there as fuel would then be a fair bit cheaper there. Such a change would mean commercial operators, with high consumption would pay more for their fuel and despite paying a higher rate of tax, the government would get less revenue. It would also facilitate and incentivise people who are laundering diesel.

    While they may pay the same amount in motor tax, they wouldn't be paying the excise or VAT on the fuel.


    we have been paying to much taxes for the last 15 years and yes it was all borrowed money taking due to greed of goverment and the ppl . I knew 7 years ago when i was offered 100k in my account the next morning towards a house that is wasnt worth it and i said no to it..if only a lot more ppl did then we would not need be taxed on taxes as we would not of borrowed as much. greed is what put is were we are nothing else anyways not to be going off track..

    yet again the taxes you mention above are all different not the same income tax or paye ..pay as you earn ,prsi pay related social insurance [towards your pension] all different if you see what i mean. but under the new ways of taxing a car buying road tax and buying fuel at the pump both fall under the new emission tax,resulting in being taxed twice for the same thing...


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  • Posts: 23,339 ✭✭✭✭ [Deleted User]


    mercenary2 wrote: »
    when we tax a car we are taxed on the emissions now ,,yet when we go to the pumps to fill up we are yet again taxed on emissions from burning the fuel,so arnt the goverment taxing us twice on the same thing and is this not illegal to charge tax twice for the same thing?

    ........... well if you're being taxed on emissions it's more than likely less than the rate in the old cc system so if I was you I wouldn't view it as being charged twice.


  • Registered Users, Registered Users 2 Posts: 318 ✭✭zulfikarMD


    corktina wrote: »
    Lets shut down all those expensive schools and hospitals , then we could get rid of all these nasty taxes.:rolleyes:

    may be outsource all school/colleges/hospitals etc.. to china..lol:D


  • Registered Users, Registered Users 2 Posts: 2,129 ✭✭✭Sesshoumaru


    The only fair system for Road Tax would be to pay it ALL at the pumps.

    That way everyone would pay a proportionate amount of tax based on a system of usage - rather than the current system where some drivers may hardly ever use their car and yet have to pay the same amount as someone who drives each and every day.

    Definitely agree. All motor taxes should be paid at the petrol / diesel pump :D


  • Registered Users, Registered Users 2 Posts: 5,965 ✭✭✭creedp


    Definitely agree. All motor taxes should be paid at the petrol / diesel pump :D


    How then will the EV drivers contribute to the pot to compensate the world for all the fossil fuels burned to create their 'zero CO2' propulsion ..


  • Registered Users, Registered Users 2 Posts: 16,069 ✭✭✭✭CiniO


    mercenary2 wrote: »

    vrt vehicle registration tax ...only once

    vat value added tax .... only once

    I don't agree.

    VRT is paid nearly twice, not once ;)

    IN general you pay VRT on OMSP (Open Market selling price) which actually already contains VRT. So your VRT is calculated as percentage of price which already contains VRT.

    Example.
    You buy a car abroad for 10k and bring it back home to Ireland (CO emissions of 200g/km).
    Cars like this in Ireland are more expensive because of vrt, and range at about 14.7k.
    So when you go to pay VRT on your car, you pay 32% on OMSP (14.7k).
    14.7k * 32% = 4.7k

    So that means that on your car which you purchased for 10k, you pay 4.7k VRT tax, which is effectively 47% of the car value, even though they claim you pay only 32%.

    So yes - you pay VRT nearly twice.


    And VAT. When car is new, you pay vat on it, which is calculated on price already containing VRT. From example above, as almost half od the car price is VRT, then it means that half of you vat is paid not on car, but on vrt.


  • Registered Users, Registered Users 2 Posts: 2,129 ✭✭✭Sesshoumaru


    creedp wrote: »
    How then will the EV drivers contribute to the pot to compensate the world for all the fossil fuels burned to create their 'zero CO2' propulsion ..

    Minus the hyperbole, that was the point of my post.


  • Closed Accounts Posts: 750 ✭✭✭Mr.Biscuits


    Victor wrote: »
    Except for people who live near the border who would just top up there as fuel would then be a fair bit cheaper there.

    Well, so what - isn't that what the EU was supposed to be about?
    Victor wrote: »
    Such a change would mean commercial operators, with high consumption would pay more for their fuel and despite paying a higher rate of tax, the government would get less revenue.

    They could legislate for that but it still is not a strong argument for the current system which is wholly unfair to the occasional driver.
    Victor wrote: »
    It would also facilitate and incentivise people who are laundering diesel.

    Sure that's there anyway and I don't see incentivication for smuggling stopping the Goverment taxing cigarettes to the high heavens.

    The simple fact is that Road Tax should be based on a system of usage. If you have a 'green' car, then you won't be buying much fuel and if you don't drive so much, the same applies.

    Not that I'm holding my breath mind - the motorist is any easy target for them, always was.


  • Closed Accounts Posts: 256 ✭✭Statistician


    To drive a car, at least the following taxes apply:

    You first pay taxes on your wages:
    - Income Tax (PAYE)
    - PRSI
    - USC
    Then you buy the car:
    - VAT
    - VRT
    Then you pay to get it on the road:
    - NCT (if over 4 years old)
    - Motor tax (or road tax or whatever it's called)
    - Is there also a levy on car insurance?
    Then you need to put fuel in it:
    - VAT
    - Duty
    You may also have to pay Tolls and parking.

    I've probably missed out some taxes, but there are at least 10 taxes involved in motoring.


  • Registered Users, Registered Users 2 Posts: 16,069 ✭✭✭✭CiniO


    To drive a car, at least the following taxes apply:

    You first pay taxes on your wages:
    - Income Tax (PAYE)
    - PRSI
    - USC
    Then you buy the car:
    - VAT
    - VRT
    Then you pay to get it on the road:
    - NCT (if over 4 years old)
    - Motor tax (or road tax or whatever it's called)
    - Is there also a levy on car insurance?
    Then you need to put fuel in it:
    - VAT
    - Duty
    You may also have to pay Tolls and parking.

    I've probably missed out some taxes, but there are at least 10 taxes involved in motoring.


    Yes, there is levy in Insurance.

    However I wouldn't call NCT a tax.
    You pay €55 for a service of checking roadworthiness of your car. That's not a tax.


  • Closed Accounts Posts: 256 ✭✭Statistician


    CiniO wrote: »
    Yes, there is levy in Insurance.

    However I wouldn't call NCT a tax.
    You pay €55 for a service of checking roadworthiness of your car. That's not a tax.

    There is no option but to pay this. It didn't exist a few years ago, and now it does. I don't even believe it does necessarily check road worthiness. I could damage my car five minutes after an NCT and make it un-road worthy.
    I look at is more of a ploy to get people to keep buying new(er) cars, and keep paying more taxes.


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  • Registered Users, Registered Users 2 Posts: 3,844 ✭✭✭Jimdagym


    There is no option but to pay this. It didn't exist a few years ago, and now it does. I don't even believe it does necessarily check road worthiness. I could damage my car five minutes after an NCT and make it un-road worthy.
    I look at is more of a ploy to get people to keep buying new(er) cars, and keep paying more taxes.

    I don't get your point. The NCT says your car is roadworthy at a specific date and time. Of course you can walk out the door and wrap it around a tree after, but what's the relevance?


  • Registered Users, Registered Users 2 Posts: 16,069 ✭✭✭✭CiniO


    There is no option but to pay this.
    Same as with insurance, but you didn't classify insurance as a tax. You just asked if there was some levy in it.
    It didn't exist a few years ago, and now it does. I don't even believe it does necessarily check road worthiness. I could damage my car five minutes after an NCT and make it un-road worthy.
    I look at is more of a ploy to get people to keep buying new(er) cars, and keep paying more taxes.

    No. It's there just to cause people to keep their cars in better condition that they would without it.
    I know it was introduced in Ireland not so long time ago, but almost everywhere is EU vehicles test were there for the last 50 years, and no one complains about them.

    It's the motor tax which is a money thrown away.
    I way prefer to pay €55 for a test, €400 for repairs, and another €28 for retest, instead of paying €500 for motortax.
    Motortax doesn't give you anything. NCT makes your car safer.


  • Closed Accounts Posts: 256 ✭✭Statistician


    CiniO wrote: »
    Same as with insurance, but you didn't classify insurance as a tax. You just asked if there was some levy in it.

    No. It's there just to cause people to keep their cars in better condition that they would without it.
    I know it was introduced in Ireland not so long time ago, but almost everywhere is EU vehicles test were there for the last 50 years, and no one complains about them.

    People are used it now, that why they don't complain. In the same way that people will stop complaining about septic tank test charges in another few years.

    Before the NCT, if the vehicle was not roadworthy, you could still be breaking the law by driving it. I do not believe it would be legal for me to drive a vehicle where the the doors had been torn off.

    It is a mandatory, government imposed tax. I suppose you could also say insurance falls into the same category.

    The argument is not whether the taxes are 'good' or 'bad', it is what the government is forcing you to pay before you can drive your car.


  • Registered Users, Registered Users 2 Posts: 16,069 ✭✭✭✭CiniO


    People are used it now, that why they don't complain. In the same way that people will stop complaining about septic tank test charges in another few years.

    Before the NCT, if the vehicle was not roadworthy, you could still be breaking the law by driving it. I do not believe it would be legal for me to drive a vehicle where the the doors had been torn off.

    But then in most cases people would even know their vehicle was not worthy, and what more - they would not really be interested to find out. Now every 2 year, or even every 1 year for older vehicles they are forced to find out. And that's actually very good for them.
    It is a mandatory, government imposed tax.
    No. It's not a tax. You are paying for a service of checking your car. It is mandatory, but it's not a tax.
    I suppose you could also say insurance falls into the same category.
    With NCT is way better situation than with insurances, as NCT is fully regulated by Law. There is certain list of things which must be checked. There is a company designated by government to do this checks. There is a set price. Pretty much all in order.
    Insurance companies are pulling a fast one with most drivers, as they can generally put any prices and any terms and conditions they want.
    I would love to see obligatory third party insurances, to be regulated to the way more higher point than they are now.


  • Registered Users, Registered Users 2 Posts: 132 ✭✭GL scrappy


    You first pay taxes on your wages:
    - Income Tax (PAYE)
    - PRSI
    - USC

    Not everybody who drives a car has a job and is lucky enough to pay these three taxes.


  • Registered Users, Registered Users 2 Posts: 168 ✭✭mercenary2


    CiniO wrote: »
    Same as with insurance, but you didn't classify insurance as a tax. You just asked if there was some levy in it.



    No. It's there just to cause people to keep their cars in better condition that they would without it.
    I know it was introduced in Ireland not so long time ago, but almost everywhere is EU vehicles test were there for the last 50 years, and no one complains about them.

    It's the motor tax which is a money thrown away.
    I way prefer to pay €55 for a test, €400 for repairs, and another €28 for retest, instead of paying €500 for motortax.
    Motortax doesn't give you anything. NCT makes your car safer.[/QUOTE

    i would agree ..
    nct or mot has been in most eu member states for quite some time it is needed keeps you on top of your car after all a vehical is no more than a dangeres weapon if it is faulty ,,road tax on the other hand well look the uk has road tax but at a fraction of the cost,,but they have roads ,we on the other hand pay higher tax to drive on pothole infested tracks which damage our cars...so another way to look at it is the goverment taxing us on them damaging our valubles...


  • Registered Users, Registered Users 2 Posts: 5,965 ✭✭✭creedp


    Minus the hyperbole, that was the point of my post.

    Ah gottcha .. irony is lost on me


  • Registered Users, Registered Users 2 Posts: 16,069 ✭✭✭✭CiniO


    mercenary2 wrote: »
    i would agree ..
    nct or mot has been in most eu member states for quite some time it is needed keeps you on top of your car after all a vehical is no more than a dangeres weapon if it is faulty ,,road tax on the other hand well look the uk has road tax but at a fraction of the cost,,but they have roads ,we on the other hand pay higher tax to drive on pothole infested tracks which damage our cars...so another way to look at it is the goverment taxing us on them damaging our valubles...

    I actually can't understand the idea of motor tax at all.
    If it's supposed to be used for building and refurbishing the roads, then I even more can't understand it.
    Roads are used by the whole society: directly (by drivers) and indirectly (by everyone).
    Roads are needed to transport nearly everything over the country.
    Without road we wouldn't have food, houses, jobs, anything really.

    That's why maintaining good road infrastructure, is essential for the whole society, and should be sponsored from general tax money, not just some nonsense motor-tax.


  • Registered Users, Registered Users 2 Posts: 5,965 ✭✭✭creedp


    CiniO wrote: »
    I actually can't understand the idea of motor tax at all.
    If it's supposed to be used for building and refurbishing the roads, then I even more can't understand it.
    Roads are used by the whole society: directly (by drivers) and indirectly (by everyone).
    Roads are needed to transport nearly everything over the country.
    Without road we wouldn't have food, houses, jobs, anything really.

    That's why maintaining good road infrastructure, is essential for the whole society, and should be sponsored from general tax money, not just some nonsense motor-tax.


    What's not to understand about it .. its a source of revenue that goes into the big pot of general tax and get spents .. in much the same way as all other taxes. How is it different to VRT and VAT? In some ways it could be seen as a reasonable tax if you consider that cars are treated as a luxury and therefore people who use them have to pay for the priveledge. In theory it is supposed to be used to fund road maintenance but in reality who knows what happens. Suffice to say that road maintenance is underfunded in this country so is that because motor tax is too low or is it because it is used to fund other aspects of Govt spend.


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  • Registered Users, Registered Users 2 Posts: 1,611 ✭✭✭cgarrad




  • Registered Users, Registered Users 2 Posts: 22,815 ✭✭✭✭Anan1


    CiniO wrote: »
    I actually can't understand the idea of motor tax at all.
    If it's supposed to be used for building and refurbishing the roads, then I even more can't understand it.
    Roads are used by the whole society: directly (by drivers) and indirectly (by everyone).
    Roads are needed to transport nearly everything over the country.
    Without road we wouldn't have food, houses, jobs, anything really.

    That's why maintaining good road infrastructure, is essential for the whole society, and should be sponsored from general tax money, not just some nonsense motor-tax.
    Motor Tax is effectively a tax on car ownership, it goes into the same general pot from which the roads are maintained.


  • Registered Users, Registered Users 2 Posts: 3,609 ✭✭✭stoneill


    To drive a car, at least the following taxes apply:

    You first pay taxes on your wages:
    - Income Tax (PAYE)
    - PRSI
    - USC
    Then you buy the car:
    - VAT
    - VRT
    Then you pay to get it on the road:
    - NCT (if over 4 years old)
    - Motor tax (or road tax or whatever it's called)
    - Is there also a levy on car insurance?
    Then you need to put fuel in it:
    - VAT
    - Duty
    You may also have to pay Tolls and parking.

    I've probably missed out some taxes, but there are at least 10 taxes involved in motoring.

    Carbon Tax.


  • Registered Users, Registered Users 2 Posts: 16,069 ✭✭✭✭CiniO


    Anan1 wrote: »
    Motor Tax is effectively a tax on car ownership, it goes into the same general pot from which the roads are maintained.

    My car must be taxed.
    My TV must be licenced, same as dog.
    What next...
    Soon we will be paying a tax on Ipod, on PC, or on microwave.
    Then eventually taxes on visiting a beach or on breathing the air...


  • Registered Users, Registered Users 2 Posts: 78,580 ✭✭✭✭Victor


    creedp wrote: »
    What's not to understand about it .. its a source of revenue that goes into the big pot of general tax
    No, Motor Tax goes directly to the Local Government Fund
    In theory it is supposed to be used to fund road maintenance but in reality who knows what happens.
    Who says this?


  • Registered Users, Registered Users 2 Posts: 5,965 ✭✭✭creedp


    Victor wrote: »
    No, Motor Tax goes directly to the Local Government Fund
    Who says this?


    Yes but taxation is taxation. It doesn't really matter whether its Motor Tax, USC, income tax. You pay it over and it gets spent. The point being made was that Motor Tax doen't make sense as roads should be maintained via general taxation. My point being what difference does it make .. if motor tax wasn't levied it would simply be collected via another form of taxation. In the end it all comes off you gross income. The same argument used to be made about the health contribution levy .. I pay this levy so what do I get in return .. the simple answer is that it went into the rather big pot that funded public health services in the same way as motor tax goes into the big pot that funds local authorities.


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