LEGISLATION TO stop drivers evading motor tax by declaring their vehicles are off the road and not in use, is being sought by Dublin City Council.
City manager John Tierney said the council was losing more than €50 million every year in income forgone through the submission of “non-use declarations” by vehicle owners.
Signature of a declaration must be witnessed by a garda, but no documentary evidence that the vehicle was not in use is required to remove the liability to pay motor tax.
The submission of non-use declarations had increased sharply in recent times, Mr Tierney said.
“The city council would be anxious that the necessary legislative change would be enacted as soon as possible. It will benefit how business can be conducted at motor tax offices and strengthen compliance.”
Minister for the Environment Phil Hogan, who confirmed at the weekend that motor tax would be increased in the budget, has said he will introduce legislation on non-use declarations as the system was open to abuse.
In a reply to a Dáil question by Fianna Fáil spokesman on finance Michael McGrath, the Minister said the most recently verified figures available to him indicated that the value of “off-the-road declarations” made during the 15 months from May 2009 to July 2010 inclusive was over €94 million.
“I am aware that current procedures governing the making of such declarations may be open to potential abuse. I intend to bring forward legislation to address the issue,”
However, the Irish Road Haulage Association said the abolition of non-use declarations would be “catastrophic” for owners of commercial vehicles.
“We would object very seriously to this proposal. In the construction industry, which has taken a big, big hit, a business might have 10 trucks off the road at the moment, you could not expect for them to be taxed,” association president Eoin Gavin said.
Owners of vehicles used for seasonal work, which could be out of commission for nine months of the year, could also not be expected to pay an annual motor tax Mr Gavin said.
In its pre-budget submission, the association has called for the introduction of a pay-per-day system where motor tax would only be applicable when commercial vehicles were in use.
Mr Hogan has been criticised by lobby groups and consumer representatives over the planned hike in motor taxation.
The Consumers’ Association of Ireland said motorists who had gone out of their way to purchase greener cars were receiving a “slap in the face” from the Government. It added that with additional taxes also expected, motorists were being penalised simply for owning cars.
“Drivers are being overburdened with taxes simply because they can’t give away their cars,” said chief executive Dermott Jewell.
The Automobile Association said the Government was likely to be accused of acting unfairly in choosing to increase taxes for recently bought fuel-efficient vehicles in the Band A and Band B categories.
“This will feel like an act of bad faith to individuals who purchased new cars,” said AA director of policy, Conor Faughnan. “Over the past three years, 70 per cent of new car sales have been in the Band A and Band B categories and these were sold to people who made the conscious choice to buy a greener, cleaner car with the promise that this would have a lower tax bill, he added.
Friends of the Earth said it was unfair to punish those who had purchased greener cars.