The price of new and used diesel cars could go up by as much as one thousand euro under plans to cut carbon emissions.

The Finance Minister is being advised to overhaul the motor tax system and help squeeze out second-hand imports, the Irish Independent reports.

The recommendations have been made by the Department of Finance's Tax Strategy Group with an aim to make Ireland a leader in the take-up of electric vehicles.

Paschal Donoghue will have to decide on the reforms in time for October's budget

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