Wednesday, June 27, 2012

Pro Rata Tax Charges would benefit recession hit motorists – Mythen


The introduction of pro rata motor tax charges would benefit hard hit drivers according to an Enniscorthy Councillor. Sinn Féin Cllr Johnny Mythen said that many drivers were unable to pay for more than three months motor tax at a time and that led to them paying more over time. With many people now paying their tax online, the extra charge on these drivers was hard to justify.

“In these hard times many drivers are unable to tax their car for more than three months at a time,” Cllr Mythen said. “This means that they will end up paying proportionately more than someone who is able to tax their vehicle for the full year. Some would say that the extra charge may only amount to a few euro, but that is not the case. The annual tax for a standard 1.4 litre privately owned car is €384. However when taxed in three month periods at a cost of €108 each quarter, this rises to €432. Extra taxation of €50 cannot be justified in this time of recession.”

“The ever increasing price of fuel plus the added punishment of extra taxes being piled on Irish motorists are having a severe impact on communities. Most motorists are barely managing on a three monthly basis. Therefore this tax is one of the most inequitable in this state. It discriminates between a motorist who can afford a full year, and one who cannot. Yet the disadvantaged motorists are in fact paying more to service the roads in the long run. This is an unfair extra and is divisive in that it punishes motorists who are budgeting to the last cent.”

“I intend to raise this issue with our TDs. This is yet another unfair expense being placed on struggling families. With the introduction of the online tax system, which has meant effective savings on administration, it is not much to ask the government to introduce a pro rata rate of motor tax.”

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