Extra cost for motor tax instalments ‘unfair’, says Cork councillor

A Cork city Labour Party councillor has called for an end to the current system of motor tax payments which sees people pay more if they do so in multiple instalments.

Motorists in Cork city paying in instalments are “being punished” for not being able to pay upfront, councillor John Maher has said, as he called on the transport minister to scrap the penalty.

Mr Maher told The Echo the charges were not fair on those struggling with the cost of living.

“The current system punishes people simply for not being able to pay in one lump sum,” he said.

“In Cork, many working people are under huge financial pressure due to the cost of living.

“It’s completely unfair that drivers here who choose to pay their motor tax quarterly or half-yearly are being charged more than those who can afford to pay for the full year upfront.

“These extra charges are simply unjust.”

Figures from the Department of Transport earlier this year showed drivers who pay their annual motor tax in instalments have paid almost €106m more to the Government over the past three years than if they paid a single annual fee.

Unfair

Mr Maher said this was hugely unfair: “Over €106m has been paid in additional costs by motorists across the country because of this outdated system.

“In Cork city, that means countless people are being hit with higher bills just for needing flexibility.

“There’s no justification for this kind of penalty anymore.

“In a digital age, administration costs are minimal and most of the process is automated.

“The minister needs to stop punishing people for using instalment options and commit to abolishing this charge in Budget 2026.

“Labour is calling for a full review of similar charges right across the public sector.

“We need to move with the times and build a fairer system that works for everyone, not just those who can afford to pay all at once.”