€1 billion – Government take from motor tax

Vehicle history expert Cartell.ie report on news from Completecar.ie that the Government makes over €1 billion annually from motor tax. The figure was revealed by Environment Minister, Alan Kelly, in response to a parliamentary question from independent TD Mattie McGrath.

The peak was in the period July 2013 – June 2014 when motorists rushed to either tax their vehicles or declare them off-road after new legislation was introduced to close a widely used loophole whereby drivers would tax their cars on an on-off-on basis. The legislation change resulted in a €1.166 billion tax take for the period as compared to €1.051 billion for the July 2014 – June 2015 period.

Cropped image woman customer, agent and new car, piggy bank, key on hood, isolated outside, outdoors. Dealership offering credit line, finance services. Lease, automobile purchase, financing concept

According to Completecar.ie the money raised is not channeled into improving road infrastructure as the Dail spending watchdog was told last year that €439 million of funding for Irish Water came directly from motor tax with a further €400 million expected to be paid to the semi-state utility this year from motor tax.

(Story courtesy Paul Healy, Completecar.ie)