Motorists being penalised over paying tax in instalments, says Ahern

Labour’s transport spokesperson Ciarán Ahern has called on the Minister for Transport to abolish the penalty imposed on motorists who pay their motor tax in instalments.

Labour is demanding that Budget 2026 include a commitment to remove the higher charges applied to quarterly and half-yearly motor tax payments, and to phase out similar penalties across the public sector.

Ahern said, “motorists who pay their tax in instalments are being unfairly penalised simply because they cannot afford to pay the full amount upfront.”

“In the midst of a cost of living crisis, this is indefensible. Labour is calling for the Minister for Transport to act in Budget 2026 and scrap these outdated and unjust charges,” he said.

“We know that drivers who opted for quarterly or half-yearly payments have paid over €106 million more than those who could afford to pay annually. These are not luxury payments – they are mandatory charges for a public service.

“The Minister may argue that the extra charge is to cover administrative costs, but in this digital age, that simply doesn’t hold water. Surely most of these systems are automated. Penalising people for using instalment options is not only unfair, it’s outdated.

“There are many reasons why someone might not be able to pay their motor tax in one go – from unexpected bills to irregular income. These people should not be punished for their financial circumstances. Public services should be accessible and fair, not structured to penalise those who need flexibility.

The Dublin South-West TD said “Labour is calling on the Minister for Transport to abolish the higher charges on motor tax instalments in Budget 2026 and to conduct a full review of similar penalties across the public sector. It’s time to modernise how we treat people who need to pay in instalments – with fairness, not financial punishment.”