Minister plans to end 'off-road' tax exemption

MOTORISTS WHO avail of the “off the road” exemption when taxing their vehicles are costing the State up to €75 million per year, according to Minister for Transport Noel Dempsey.

Mr Dempsey plans to end the exemption in a move which will compel all registered owners to tax their vehicles, whether they are in use or not.

“The new system means if you have a car, it has to be taxed,” Mr Dempsey said.

Under current legislation those who sign a declaration in a Garda station stating their vehicles have been off the road do not have to pay “back tax” to the point where the vehicle was last taxed, but can nominate the month from which they wish to declare the vehicle was restored to the roads, and pay road tax accordingly.

According to Mr Dempsey there is “significant evidence” to suggest some drivers are fraudulently declaring the vehicle was off the road. Such motorists run the risk of being detected by gardaí who have the power to seize vehicles once the tax disc is more than one month out of date. Gardaí also have mobile automatic number plate recognition systems which can identify untaxed vehicles.

The Minister said the ending of the exemption is part of the Government’s four-year economic plan, but he acknowledged the changes will need legislation.

The move has angered hauliers who have said a straightforward abolition of the exemption would be “totally unjustifiable”.

Vincent Caulfield of the Irish Road Haulage Association said many hauliers had several vehicles off the road as there was no longer any business for them due to the economic downturn.

The association has instead proposed a “vignette” system similar to that in use in other countries where hauliers essentially buy a ticket for the days it wants a particular vehicle on the road.

“There would have to be penalties of course for those who break the rules, but this would be much more fair,” said Mr Caulfield.

Currently the average tax on a heavy goods vehicle is about €3,000 a year which, he said,would be an unfair imposition on a haulier not using the vehicle, particularly as there was no market to sell vehicles on.

Opposition spokesman on transport Simon Coveney said he would be more amenable to the hauliers’ position and Fine Gael would not eliminate the exemption without consultation.

Mr Coveney said he “could well understand” their position and a simple end to the exemption would not be the way forward.