Climate & Environment

Loss of tax revenue from electric cars ‘could be offset’ by toll increases

Michael McMahon said that replacing existing industry with green industry presented ‘a lot of growth possibility’

McMahon estimated that the move away from fossil-fuelled cars would result in a loss of around €2.5 billion to the exchequer by 2030. Picture: Fergal Phillips

The loss of tax revenue resulting from the transition to electric cars could be offset by an increase to tolls, according to the chairman on the Irish Fiscal Advisory Council (Ifac).

Michael McMahon, the chair at Ifac, estimated that the move away from fossil-fuelled cars would result in a loss of around €2.5 billion to the exchequer by 2030.

“As we move towards a climate transition and away from the most polluting cars and towards, ...