Commercial operators are leading the way when it comes to delivering on multi-modal, shared mobility ambitions, while helping to develop new mobility technology across Ireland. Keen to assist with modal shift, the membership of Mobility Partnership Ireland (MPI) can play an important role in assisting the government with the delivery of these transport options. However, in order to achieve this, a supportive policy framework must be put in place to enable and empower a shift in commuter, as well as business behaviour to a more viable and sustainable transport network.
Apply a minimal VAT rate on hire of e-bikes
MPI is seeking a reduction of the VAT rate from 13.5% to 9% rate which would send a clear signal of support from Government for active travel as well as contributing to Ireland’s climate action targets. The net impact will be reduced emissions, less congestion, affordable travel and the population leading healthy lives.
Simplify the reduced VAT rate on vehicle rental
Currently a standard VAT rate of 23% applies when a person uses a shared vehicle for more than 5 weeks within one year. Otherwise, a reduced rate of 13.% applies MPI recommends changing the VAT rule on short-term vehicle, so the reduced VAT rate applies to car sharing period of 35 days consecutively (instead of cumulatively) within 12 months.
Waiving toll charges for shared mobility during off-peak hours
Toll charges should be waived during non-peak hours which will incentivise shared sustainable transport behaviour, sending a clear message from Government to commuters that it supports those who choose shared modes of transport.
Reduce all bus passenger fares by 20%
Replacing car journeys with public transport by bus can help reduce CO2 emissions by up to 42%, depending on the model of bus and passenger numbers. With pressures facing commercial operators from unfair competition, labour shortages and significant cost increases in areas such as fuel, insurance, labour costs and engineering costs, it is incumbent that commercial bus operators are supported. Commercial bus operators require a ‘level playing field’ to compete with public transport operators. The disparity between the cost of public transport operators and commercial operators currently sits at about 20% under the Fare Reduction Scheme and is an unfair imposition on service users during a cost-of-living crisis.
Introduce a tax-free Shared Mobility Allowance
Having an integrated payment application for all modes of transport – vehicle rental, bus, rail, taxi, bike hire, is a crucial piece of infrastructure for promoting public transport and sustainability. Digital connectivity and the ability to plan, book and pay for a multi-modal journey in one application is a key part of a cost-effective future mobility system. MPI is advocating for the introduction of a tax-free shared mobility allowance that would encourage a multimodal shift among commuters. Like the bike to work scheme, employees would be able to choose services from approved suppliers – bike hire, taxi, bus etc. – all of which incentivise moving away from travelling by private car.