Is the Government asleep at the wheel over motor tax revenue?

Reform needed to safeguard €6bn income while promoting electric vehicles, economist warns

The intermediate target of having 180,000 electric vehicles on the road by 2025 is optimistic, according to a new report. File photograph: Florian Gaertner/Photothek via Getty Images

The intermediate target of having 180,000 electric vehicles on the road by 2025 is optimistic, according to a new report. File photograph: Florian Gaertner/Photothek via Getty Images

The Irish motor tax system needs substantial reform if the State is to retain revenues coinciding with the country switching to widespread use of electric vehicles (EVs), according to analysis by leading economist Colm McCarthy.

In a report published on Monday, he concludes the current system based around taxes on fossil fuels is unsustainable, and threatens to eliminate a large part of the current annual revenue base of €6 billion.

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