Transport Department Acknowledges Lack of Motor Tax Compliance Data

The Department of Transport has revealed a significant gap in its oversight of motor tax compliance, admitting it cannot quantify the number of drivers evading payment. This revelation occurred during a session with the Public Accounts Committee on March 14, 2024, where department representatives discussed the financial statements related to motor tax for the previous year.

During the session, officials from the Department of Transport acknowledged the absence of a system to effectively monitor compliance with motor tax regulations. This lack of oversight raises concerns about potential revenue losses for the government, which relies on these funds for critical transportation infrastructure and services.

The Public Accounts Committee expressed its frustration over the situation, with members highlighting the implications of not knowing how many drivers are failing to pay their motor tax. The committee emphasized the need for transparency and accountability in tax collection processes, particularly in light of the significant sums that could be at stake.

Currently, the government does not have an accurate estimate of the revenue that could be generated from unpaid motor tax. This issue not only affects public finances but also raises questions about fairness among law-abiding drivers who fulfill their financial obligations.

Committee members urged the Department of Transport to implement measures that would enhance tracking and enforcement of motor tax payments. The absence of such measures could lead to an erosion of public trust in the tax system, as well as a potential increase in tax evasion.

The discussion underscored the importance of effective governance in managing public resources. Without reliable data and monitoring systems, the government may find it challenging to address compliance issues and ensure that all drivers contribute their fair share to the system.

As the situation stands, the Department of Transport faces mounting pressure to develop a comprehensive strategy to tackle motor tax evasion. The committee’s inquiry highlights the need for prompt action to rectify these deficiencies and ensure that the motor tax system operates efficiently and equitably for all stakeholders involved.