At a global level, tight emissions rules are pushing car makers towards cleaner combustion engines and ultimately electric vehicles (EVs). At national levels, governments are tweaking taxes and incentives to influence consumer choice, and pull them towards EVs.
Every incentive or tax change carries the risk of unintended consequences. As with most tax rules, the devil is in the detail and it’s often a game of whack-a-mole. With the Government considering changes to Ireland’s tax regime around EVs, it’s worth examining how these structures have worked – and not worked – in other countries.