Irish drivers to pay per mile
Road charging could make up for EV tax shortfall
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.”