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Motor Tax

Motor Industry Related Taxation

The total contribution to the Exchequer from all motor related sources was over €5.5 billion in 2006. When compared to €5.1 billion in 2005, this represents an increase of €400million or 8.6 per cent. The main drivers of the increased revenue from motor related taxation were VRT receipts on cars and other motor vehicles which together increased by 12 per cent over the period 2005 – 2006, and revenue from VAT on motor vehicles, repairs and fuels which totalled €162m in 2006, an increase of almost ten per cent over 2005 levels. In addition, revenue from Road Tax totalled €897.7 million in 2006, representing a 9.6 per cent increase on the revenue from Road Tax in 2005. The estimates of government revenues from road tolls represent the revenue to the public sector from both the East and West Link Toll Bridges1. Together the West and East Link bridges raised €40.7 million from motorists in 2006; an increase of almost 4% on the public sector revenue raised in the previous year.

Total Government Revenue from Motor Related Taxation 2005 & 2006

Tax Element20052006% Change
2005 – 2006
VRT on Cars1,128.61257.511.4
VRT on Other Vehicles20.229.948.0
VAT on Motor Vehicles563.0604.07.3
VAT on Repairs56.062.010.7
VAT on Fuels442.0496.012.2
Excise on Fuels1921.62042.36.3
Road Tax802.4879.79.6
Benefit in Kind 2152.1152.10.0
Road Tolls39.240.73.8

Source: Goodbody Economic Consultants.

Total Government revenue from all sources was in the region of €47 billion in 2006. With over 12% or €5.5 billion coming from motor related sources, it is clear that motorists are contributing generously to the welfare of the state. Less than 1/5th of motor taxes go into road infrastructure.

1 Data on pubic sector revenues from the M1 and M4 motorways are not available.

2 Owing to a deficiency in data relating to the Exchequer revenues from BIK, Goodbody have produced an estimate of such revenues from BIK. The estimate represents the estimate produced as part of the 2005 Submission and is based on the existence of 59,580 company cars each accumulating an average of 24,500 miles per annum. Based on these assumptions it is estimated that revenue to the Exchequer from BIK on company cars in 2006 was approximately €152.1 million.