[Article] Only half €4bn motor tax is spent on roads

Steve

From here

I know it's been winged about to death here, it's interesting to see actual figures though, especially when the VAT figures are included.
I'm surprised at the meager VAT income from diesel though.

The Government gets twice as much revenue from motorists in the form of VAT, VRT and fuel taxes, as it spends on building and improving road networks across the country.

New figures show that in 2007 the Government spent €2.32bn on road improvement and maintenance, but in the same year it took in €4.802bn in motoring-related taxes.

Fine Gael TD Lucinda Creighton said: "Motorists are targeted in every single budget to finance the State coffers, but it is clear that most of that revenue is not invested in our national infrastructure.

" Car owners pay a staggering amount into the Exchequer, but it is less than clear where these monies end up."

She added that motorists are being squeezed by the Government on an annual basis. "They are receiving no accountability and no value for money in return. It is time that motorists stand up and be counted," she said.

She said it was clear that motorists are being "fleeced" and receiving little value for the huge taxes they are paying.

Waste

Rather than being ring-fenced for road improvements, taxpayers' monies have been frittered away through massive overruns across the board, she said.

Figures from the Revenue Commissioners show that the estimated VAT yield in the first five months of the year in relation to motoring is €691.4m.

This breaks down as €402.5 from motor vehicles; €30.4m from car repairs; €220m from petrol; €29m from auto diesel and €7.5m from road tolls.

Meanwhile, it has emerged that the European Union may get barely one third of its target for biofuels in transport fuels from home produced sources by 2020.

That means it will require massive imports to meet the goal, according to a draft European Environment Agency (EEA) report.

The EU plans to source 10pc of transport fuels from renewable sources by 2020, with the bulk coming from biofuels.

The report sent to the 27 member states shows that the most cost-effective and sustainable scenario for biofuels would deliver just 3.4pc of the EU's transport fuels from domestic production in 2020.

An EEA spokesperson stressed that the report was at an early stage and was not scheduled for publication until September.

Alun

I don't think anyone (apart from people who call it 'road tax') was under the illusion that all income from motor tax was ringfenced for road works / improvements. I certainly wasn't.

-Chris-

I'll be honest, I didn't believe the money would be ringfenced and I don't think it should be.

What's the logical extension to "Motorists are targeted in every single budget to finance the State coffers, but it is clear that most of that revenue is not invested in our national infrastructure"?
If every Euro collected from cars goes into the roads network, then why don't you extend this to say that Hospitals will only be funded by revenue the raise through their actions. Schools can only receive money from the exchequer if they have contributed a similar amount in tax receipts. RTE will only receive funding from TV licences...


If you have a problem with inefficiencies in the spending of tax revenue, then the government should be pressured to cure these inefficiencies (and they have quite a bit of pressure at the moment anyway).
Motorists are a soft target and sometimes I think it's pretty unfair, but the reality is that we love our cars and so no matter how high the tax levels on us go, we still want our mobility and independence so we pay it.
If that "soft" money is used effectively on schools and hospitals rather than motorways and the continuous painting and repainting of our roads, the I see no problem with it!

My 2c

Steve

I agree, I don't think many people are under the illusion that it's ringfenced.


The VAT breakdown caught my attention though.

This breaks down as €402.5 from motor vehicles; €30.4m from car repairs; €220m from petrol; €29m from auto diesel and €7.5m from road tolls.

Why is there so little contribution from Diesel? I know most Diesel used is by companies who reclaim the VAT but I thought that the private usage would be a lot higher.

Guy:Incognito

SteveC wrote: »

Why is there so little contribution from Diesel? I know most Diesel used is by companies who reclaim the VAT but I thought that the private usage would be a lot higher.

It would equate to about 12%ish (very rough guess) from the figures. Would that not roughly equate to diesel ownership before th eannouncement of the co2 system?

Plus dont taxis claim vat back on fuel? (company cars too?) that only leaves the privately owed sector which I'd guess was by far the lowest diesel ownership, percentage wise.

-Chris-

Stekelly wrote: »

It would equate to about 12%ish (very rough guess) from the figures. Would that not roughly equate to diesel ownership before th eannouncement of the co2 system?

Audi are usually 17% diesel afaik.

murphaph

50% of all motor tax revenue being spent on roads is a lot higher than our nearest neighbours I'm willing to wager!

mike65

I'm shocked it is that high, must be those inter-urbans now we've run out of EU capital funding.

Mike.

Tipsy Mac

I'd say somewhere around 70million is from our friends in the North getting their petrol and diesel here on the cheap

jayok

Stekelly wrote: »

Plus dont taxis claim vat back on fuel? (company cars too?) that only leaves the privately owed sector which I'd guess was by far the lowest diesel ownership, percentage wise.

Yeah, I'd say the €29m in taxes is the net amount after the VAT has been reclaimed by VAT registered individuals. e.g. Amount of VAT collected €229m amount of VAT refunded €200m, net = €29m

kluivert

Vat intake from Tolls in a load off non sense 7.5m thats 35.71m net (7.5/.21)

I think the accounts for the companies who run the tolls show greater income than that I could be wrong though.

Westlink carries about 70000 vehicles a day, according to its website. Take average say 50000 a day x 365 days = 18,250,000 vehicles a year x 2e a trip = €36.5m gross (€30.17m net)

Eastlink carries about 22000 vehicles a day, equals around €13m net a year.

M1 say it carries about 22000 vehicles a day, equals around €13m net a year.

Between those three thats a total net of 56.17m net a year, thats 20.46 net more than the figures pulled from above for 4.3m in vat income not accounted for.

This was thrown together very quickly, as i said I am possibly wrong as I dont know what makes up those figures above.

jayok

Again, is it a possiblity that the net income, includes the VAT purchases? And that the €7.5m is the final account? Although, I wouldn'y be should what the Toll Bridges are spending their money on?

Del2005

kluivert wrote: »

Vat intake from Tolls in a load off non sense 7.5m thats 35.71m net (7.5/.21)

I think the accounts for the companies who run the tolls show greater income than that I could be wrong though.

Westlink carries about 70000 vehicles a day, according to its website. Take average say 50000 a day x 365 days = 18,250,000 vehicles a year x 2e a trip = €36.5m gross (€30.17m net)

Eastlink carries about 22000 vehicles a day, equals around €13m net a year.

M1 say it carries about 22000 vehicles a day, equals around €13m net a year.

Between those three thats a total net of 56.17m net a year, thats 20.46 net more than the figures pulled from above for 4.3m in vat income not accounted for.

This was thrown together very quickly, as i said I am possibly wrong as I dont know what makes up those figures above.

On the M50 there is a clause in the lease NTR have that when they go past x amount of vehilces in a day then all the money goes straight to goverment (or a very large part of it). And AFAIK x is set fairly low for the amount of traffic using the M50 now. The goverment was and allways will make a killing off the M50 and motorists in general.