Written answers

Monday, 8 September 2025

Department of Finance

Electric Vehicles

Photo of Emer CurrieEmer Currie (Dublin West, Fine Gael)
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528. To ask the Minister for Finance if his Department has examined any proposals for a weight-based tax for large electric SUVs; and if he will make a statement on the matter. [45884/25]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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Vehicle weights across all engine types are progressively increasing due to a range of factors, such as fleet electrification, the rising popularity of SUVs and larger vehicles, vehicle emissions regulations, stricter safety regulations, technology improvements and consumer preferences. This weight upsurge raises several issues. Heavier vehicles, be they internal combustion engine (ICE) cars or electric vehicles (EVs), require greater energy and resource consumption for propulsion and at all stages of manufacturing. In addition, there is a need to consider the impact of a heavier vehicle fleet on traffic congestion, road infrastructure degradation, air pollution, road space and road safety.

The Budget 2024 and Budget 2025 Tax Strategy Group papers explored options around adding a weight component to the VRT charging structure, with the 2025 Paper examining the French weight-based tax and exploring options as to how such a tax could operate in an Irish context. These papers are available online at www.gov.ie/en/department-of-finance/collections/tax-strategy-group-papers/

Officials from my Department continue to monitor developments in the vehicle taxation area. New proposals are considered, and current vehicle tax policies are kept under review as part of the Tax Strategy Group and Budgetary cycle.

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