Motorists could face a tax on the distance they drive rather than pay excise duty on fuel.
It is just one of the options being considered by the government to maintain tax revenue, as lower-emission cars become more popular.
The Irish Times reports Department of Finance officials are warning the move to more efficient cars could 'could severely challenge the revenue' generated for the exchequer.
A similar suggestion in the past faced a backlash from TDs in rural areas and the commuter belt.
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