Tax incentives and electric vehicles: what can Ireland learn from other countries?

Recent overhaul of regime in Denmark represents a major U-turn on tax breaks

Legislators are equally concerned about the cost of tax incentives to the public purse, particularly as the volume of new EV sales grows. Photograph: iStock

Legislators are equally concerned about the cost of tax incentives to the public purse, particularly as the volume of new EV sales grows. Photograph: iStock

At a global level, tight emissions rules are pushing car makers towards cleaner combustion engines and ultimately electric vehicles (EVs). At national levels, governments are tweaking taxes and incentives to influence consumer choice, and pull them towards EVs.

Every incentive or tax change carries the risk of unintended consequences. As with most tax rules, the devil is in the detail and it’s often a game of whack-a-mole. With the Government considering changes to Ireland’s tax regime around EVs, it’s worth examining how these structures have worked – and not worked – in other countries.

The Irish Times
Please subscribe or sign in to continue reading.
The Irish Times

How can I keep reading?

You’ve reached an article that is only available to Irish Times subscribers.

Subscribe today and get the full picture for just €1 for the first month.

Subscribe No obligation, cancel any time.