Douglas council says ending free parking in the capital could result in residential streets being clogged with traffic.
The Department of Infrastructure this week published a raft of cost saving measures, to meet a budget shortfall of £5m.
Retailers have expressed concern at plans to charge for parking in the town centre - which they say could deter people using local shops.
Douglas councillor David Ashford says free parking has been a perk - and removing it in an economic squeeze may be legitimate - although there will be a down-side:
Clip 1
Tynwald backs move to bring forward business case for full Douglas Bay Horse Tramway reinstatement
FOI reveals Locate Isle of Man staff costs
Noble's Hospital is safe, insists Manx Care's medical director
Infrastructure minister defends scrapped Ramsey flood defence scheme with no alternative currently planned