A new vehicle tax based on weight is being considered as part of 2025 government budget plans, according to papers from the Tax Strategy Group (TSG) who are key advisors to the Department of Finance.  

Currently revenue from road taxes and fuel excise duties is reducing due to a switch to electric vehicles. Some estimates put this cost at €1.5 billion per year. However, these vehicles are often much heavier and have a detrimental effect on roads. By introducing a weight tax the government may hope to claw back some of this lost funding.   

The TSG have pointed to data from the International Council on Clean Transportation which says that average car weight in Ireland has increased by some 28% between 2001 and 2022.

As well as plugging a cost shortfall, discouraging larger and heavier SUVs may be seen as desirable because of the higher resources required in manufacture, increased congestion, road safety concerns, greater road degradation and increased pollution. In the case of heavier electric vehicles pollution can come from increased tyre wear. 

The TSG says that “To maintain Exchequer receipts, tax structures must be amended over time in line with the changing vehicle composition.”

Such a structure is already in place in France. However, proposals to introduce similar in Ireland are already being met with considerable disapproval and Ministers would be reluctant to risk a widespread backlash.