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:
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