Estimated £71/2m motor tax not paid annually

REDUCTIONS in the levels of motor tax and insurance evasion have been recorded in a survey by the National Roads Authority

REDUCTIONS in the levels of motor tax and insurance evasion have been recorded in a survey by the National Roads Authority. But motor tax evasion is still costing the Exchequer an estimated £7.5 million per annum.

"We must seek out and tackle these persistent tax evaders", the Minister for the Environment, Mr Howlin, declared yesterday. "I intend to follow this up with the Garda Commissioner".

The NRA survey found that 2.8 per cent of Irish motorists do not pay motor tax, compared to between 6 and 7 per cent in 1991 and 10 to 14 per cent in 1987. Currently, the comparable figure for vehicle licence duty evasion in the UK is 4.1 per cent.

On motor insurance, the survey found that the national level of uninsured driving is estimated at 3.8 per cent, compared with 6.5 per cent in 1991 and 7.7 per cent in 1987. Motorcyclists show a noncompliance rate considerably higher than other categories.

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According to Mr Howlin, the decreasing levels of evasion "reflect various follow ups both through the reminder system issued by my Department and also enforcement by the Garda Siochana". However, he said there was no room for complacency.

The 3.8 per cent evasion rate for motor insurance implied that up to 48,000 vehicles could still be uninsured and this was a cause of continuing concern, Mr Howlin said. "On this basis, loss of premium income to Irish insurers in 1996 could be over £24 million", he added.

The NRA processed and analysed the survey, which was carried out by the Garda Siochana. It covered some 44,000 vehicles, or about 3.3 per cent of the total stock of almost 1.34 million licensed vehicles. Copies of the report may be purchased from the NRA for £5.