There have been calls for the Motor Tax system to be substantially reformed to retain revenue that is currently received through taxes on car and fuel ownership, as the country moves to more widespread use of electric vehicles.
The call comes from the Economist Colm McCarthy, the author of a new Economic report commissioned by Irish Car Carbon Reduction Alliance.
Speaking on Today with Sarah McInerney, Colm McCarthy suggested motorists could be charged for the use of the road system, rather than owning cars or buying cars or for paying for fuel.
He said together, these three taxes currently pay for building, maintaining and policing the road system.
He said a system could operate where a motorist would pay a certain rate, which would increase if they choose to travel on busy roads at peak times and would be less if they travelled on empty roads.
The report also finds that the current tax system is hindering motorists from moving to greener vehicles.
Mr. McCarthy said the current system incentivises people to buy old less fuel efficient cars from the UK.
He said most of our used cars are from the UK, but these are 4-6 years old and the previous generation of cars and are not as fuel efficient.
