How will Ireland fund essential services as dirty petrol guzzlers are replaced by electric cars?
As much as €3bn could be lost to the Irish Exchequer as low-emission vehicles become the norm by 2030, according to industry experts. Huge amounts of revenue used to fund essential services are generated by vehicle registration tax, motor tax and fuel tax and could largely disappear as the petrol engine is slowly consigned to history.
Almost €5bn - or 7pc of government revenue - is generated through Vehicle Registration Tax (VRT), fuel tax, tolls, motor tax and Vat, it is estimated. As yet, there is no clear plan as to how this money can be replaced.
A government taskforce has been set up to explore options to accelerate the uptake of hybrid, electric and other low-emission vehicles. It will propose a package of measures for inclusion in October's Budget to promote electric vehicles in particular.