Electric vehicles and renewables could wipe out USC-sized chunk of Irish tax income

Ireland risks billions in tax losses and climate fines unless it overhauls its tax system and hits emissions targets

If today’s tax system was left unchanged, the fall in tax revenues would amount to €5bn in today’s money, almost as much as the USC tax raises.

Tax revenues could fall by as much as the Universal Social Charge brings in each year as more people switch to electric vehicles and renewable energy sources, the Irish Fiscal Advisory Council has warned.

However, the budgetary watchdog has warned that missing key climate transition targets would be much costlier and could amount to €5,000 for every person in the country.