Car tax or road tax.

Signal_ rabbit

I was always lead to believe that in Ireland the tax on motor vehicles is a motor vehicle tax.

So where does that money go to and what is it used for?
I was under the impression that it go to local councils and is used for the upkeep of the roads. Although the money raised from motor tax alone isn't enough to cover the whole upkeep of the roads, local councils get extra money from central government to fill the deficit.

Am I correct in assuming this? Because if so then the whole 'road tax' (sic) debate is valid.

Jonny Drama

Cat tax WILL be next!!

dave_o_brien

Signal_ rabbit wrote: »

Am I correct in assuming this?

No.

It's not ring fenced. It goes towards paying for roads, paying for teachers, paying for TD costs, paying for RTE, paying for an Gardaí, etc. Mostly it goes towards paying interest on loans our state has accrued in keeping itself going. As does all of the tax generated from almost every other source, including income tax, tax on cigarettes, petrol, sweets, etc. Everyone pays, everyone gets the use.

Beasty

Although politicians may try and dress up certain tax raising measures as targetted towards specific services, it really is completely pointless to try and do so. Any shortfall is funded from central government resources, and any surplus should be ploughed back into the central pot.

There are a number of taxes specific to motorists, including motor tax, vehicle registration tax and fuel duties. You can add to that general taxes that apply to motoring expenses, such as VAT. If you take it to the extreme the motoring industry contributes further amounts such as corporation tax on profits and emploers PRSI. Then employees within the motor industry pay additional tax through PAYE, as well as their own consumption taxes (again such as VAT). But as I said, it's a pointless exercise. Everything goes into the general pot to fund hospitals, schools, infrastructure, Government, the unemployed etc. If anyone does attempt to say one part of the economy contributes more than it gets back, then so what? Ultimately we pay our politicians to take decisions on what the public sector does, and the range of taxes imposed to fund it.

I do think cats should pay more though

EDIT: Title changed (I was quite tempted to change it to Cat tax or Toad tax mind)

Jonny Drama

[QUOTE EDIT: Title changed (I was quite tempted to change it to Cat tax or Toad tax mind) [/QUOTE]

Now my above comment looks stupid! dang....

Captain Havoc

Beasty wrote: »

I do think cats should pay more though

Just because we win more All-Irelands, doesn't mean we should pay more tax.

Bunnyhopper

Captain Havoc wrote: »

Just because we win more All-Irelands, doesn't mean we should pay more tax.

It's already been proposed:

https://www.boards.ie/vbulletin/showpost.php?p=80652001&postcount=4224

tomasrojo

Local Government Fund - General Purpose Grant

The Local Government Fund (LGF) is a special central fund which was established in 1999 under the Local Government Act 1998. It is financed by the full proceeds of motor tax and an Exchequer contribution. The Fund provides local authorities with the finance for general discretionary funding of their day-to-day activities and for non-national roads, and funding for certain local government initiatives.

http://www.environ.ie/en/LocalGovernment/LocalGovernmentAdministration/LocalGovernmentFinance/

Hermy

Beasty wrote: »

...Everything goes into the general pot to fund hospitals, schools, infrastructure, Government, the unemployed etc...

Don't forget the poor banks.:mad:

Lawrence1895

Hermy wrote: »

Don't forget the poor banks.:mad:

And the even poorer bondholders...

Anyway, I'm not paying any road tax, a bicycle does not pollute the air

Wise Old Elf

Motor tax collected in the Local Authorities and online is sent into the Dept of the Environment's "Local Government Fund", the same place the household tax is going (I think).
The Local Government Fund is then distributed to each Local Authority based on a fairly incomprehensible formula.
Local Authorities then use this to fund ALL of their services, so the money you pay for motor tax is not ring fenced for roads etc.
Not as sure about VRT or VAT on petrol, but I'd imagine it just goes into central exchequer funds.
Hope that helps, clear as mud!:rolleyes:

Signal_ rabbit

So to clarify....if you pay motor tax then there is a good chance that money goes to the upkeep of the roads?

As does PAYE, IT, VAT etc?

carthoris

Signal_ rabbit wrote: »

So to clarify....

On the contrary - that appears to be deliberately ambiguous and implies that the money for motor tax pays for for the upkeep of the roads and the amount contributed from PAYE, IT, VAT etc is negligible in comparison. As has been shown repeatedly in this thread so far motor tax goes into the central fund along with a number of other sources of taxation, from which the local authorities receive a sum which they use for their own use. It is impossible to link motor tax to road upkeep as the money is not ring fenced for the upkeep.