Mobility Partnership Ireland Calls for Additional Tax Incentives to Drive Transport Emissions Reduction
Ahead of Budget 2026
Mobility Partnership Ireland (MPI), the national coalition of shared transport providers, is calling on the Government to introduce a new Sustainable TaxSaver Account and reduce VAT on shared mobility services in Budget 2026 to tackle Ireland’s transport emissions crisis.
MPI is calling for the establishment of a Sustainable TaxSaver Account in Budget 2026, allowing employees to set aside up to €100 per month of pre-tax income in a virtual account, to be used across public transport and shared mobility services including bike share, car-share, car rental and taxis. This would expand the benefits of the scheme nationwide and give commuters the flexibility to make multi-modal journeys that reflect modern travel patterns.
The current TaxSaver scheme – which is only being taken up by approximately 25,000 commuters – continues to exclude low-emission options such as bike share, car share, short-term rental and other micro-mobility services, despite the growing role these modes play in helping people leave the private car at home. In addition, MPI is urging the Government to reduce VAT on short-term bike and car rental from 13.5 per cent to 9 per cent. Shared transport services operate on tight margins and have already seen both bike share and car share operators exit the Irish market in recent years. A modest VAT reduction would lower costs for commuters, make shared mobility more attractive, and help stabilise operators who are investing in sustainable, tech-enabled transport solutions.
MPI Chairperson Hugh Cooney said:
“The current TaxSaver Commuter Ticket model is too rigid and doesn’t accurately reflect how people are travelling today. It continues to exclude important low-emission options like bike share, car share, short-term rental and micro-mobility services, despite the key role these modes play in encouraging people to leave the car at home.
There’s also a clear gap for commuters outside Dublin, where access to bus, rail and Luas may be limited, and more flexible travel solutions are essential.
If we want to make real progress in reducing Ireland’s transport emissions then we need a commuter TaxSaver system that reflects the reality of modern, multimodal commuting across the country.”
Transport is one of the sectors furthest from meeting its 2030 carbon budgets. According to the Environmental Protection Agency, Ireland would have needed to cut transport emissions by 33.8 per cent in 2025 to stay within its current carbon budget – an unachievable target under existing measures.
MPI argues that practical steps like a Sustainable TaxSaver Account and a VAT cut for shared mobility services represent affordable, scalable measures that can deliver real change. The TaxSaver reform could double the number of employees benefitting from commuter tax incentives in its first year, while a VAT reduction would have a relatively minor cost to the Exchequer but a major impact on encouraging people to switch to lower-emission journeys.
Mobility Partnership Ireland (MPI) is a coalition of commercial providers across bike hire, car rental, taxi services, bus services, and integrated payment solutions committed to enhancing Ireland’s sustainable transport network.
MPI operators are leading the way when it comes to delivering on multi-modal, shared mobility ambitions, while helping to develop new mobility technology. Over the past 5 years, over 32 million journeys have been facilitated by MPI operators.
Mobility Partnership Ireland’s mission is to Move Sustainable Transport Forward. Working with Government, state agencies, and local authorities, MPI aims to make the Irish transport sector more sustainable through supporting and integrating more forms of sustainable transport; and incentivising more commuters to use more modes of sustainable transport as practical alternatives to private cars.
