The review should include vehicle registration tax; motor tax, excise duty, carbon tax, fuel pricing and “distance-based charges” the Climate Change Advisory body said. Photograph: Dylan VaughanThe review is required by the end of Ireland’s first carbon budget in 2025 to ensure taxation policy, “is aligned with climate objectives, promotes energy efficiency and minimises negative impacts on society”, the independent body said in its annual assessment of the transport sector.
The report published on Thursday, highlighted transport emissions increased last year and “even with the full implementation of proposed policies and measures the sector will exceed its emissions ceiling” – a legally-binding target under carbon budgets agreed up to 2030. It also highlighted EU proposals for gradual extension of “electricity tax” to residential customers as part of possible options for replacing fossil fuel tax revenues. Subsequent motor tax changes in the 2024 budget, however, were modest with changes to benefit-in-kind for employees with a company EV and an extension of VRT relief for BEVs.
It acknowledged a 24 per cent increase in public transport use last year, a significant increase in new rural bus service provision and a 20 per cent average fare reduction on public bus services which should be continued.