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Irish drivers to pay per mile

Road charging could make up for EV tax shortfall

- John Mcilroy John_mcilroy@dennis.co.uk @johnmcilro­y

MOTORISTS in the Republic of Ireland could lead the way in paying taxes based on how many miles they drive per year, after officials in the country admitted that they may be forced to consider such a scheme.

A discussion document, titled ‘Energy and Environmen­tal Taxes’ and issued by the Irish Government’s Department of Finance, admits that the switch towards more fuel-efficient and pure-electric vehicles will hit taxation budgets.

“The structural shift to lower CO2emittin­g vehicles, and in particular any significan­t take-up in Electric Vehicles, will severely challenge the revenue base from vehicles across the fuel excise duties, motor tax and VRT [Vehicle Registrati­on Tax],” the document states. “This is a longer-term issue currently under considerat­ion by the Department.”

It continues: “Different solutions will be required to be developed. For example, in relation to replacing fuel excise duties, the possibilit­ies of shifting taxes to road usage should be considered in the context of the uptake of EVS or ‘super-low’ emission vehicles.”

This is believed to be the first on-therecord admission by a major European policymaki­ng body that pay-per-mile road pricing may be needed to help avoid an electric vehicle-induced black hole in fuel duty income.

UK Government officials have spoken previously about introducin­g a pay-permile scheme for lorries, but resisted calls for a similar policy on all vehicles, despite research suggesting up to £170billion could be lost between now and 2030 because of reductions in fuel duty.

When asked back in January if the UK’S car users could pay per mile to offset the losses, Transport Secretary Chris Grayling said: “Lots of people think it’s the right thing to do, but we are not preparing that as an alternativ­e route to funding our roads or to bringing in tax.”

 ??  ?? PAY AS YOU GO Drivers in Ireland could pay per mile to fill the taxation void caused by the switch to low-emission and electrifie­d vehicles
PAY AS YOU GO Drivers in Ireland could pay per mile to fill the taxation void caused by the switch to low-emission and electrifie­d vehicles
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