VRT relief on electrical cars extended to end of 2026

Also mentioned new BIK category for electric vehicles only...Thought we had this already.
 
Extract from Speech
In support of increasing the number of electric vehicles on our roads, I am extending the €5,000 VRT relief for electric vehicles for a further one year until the 31st of December 2026.

In relation to the Benefit-in-Kind regime for company cars, I am extending, on a tapered basis, the universal relief on the Original Market Value of a vehicle which was first introduced as a temporary measure in 2023. This relief will remain at €10,000 in 2026. It will reduce to €5,000 in 2027 and €2,500 in 2028, being abolished from 2029. I am also creating a new vehicle category for zero emission cars only, where the lowest BIK rates will apply.
Click to expand...
 
Savvy said:
Also mentioned new BIK category for electric vehicles only...Thought we had this already.
Click to expand...
The lowest band (A) is for any vehicles between 0 and 59g/km CO2 emissions. Quite a few plugin hybrids (dubiously) fit into that band.
 
the BIK original bracket was meant to drop from 35K to 20K in 2026, is this still the case , and the 10K extra BIK exemption is on top of the 20K figure?
 
mc-BigE said:
the BIK original bracket was meant to drop from 35K to 20K in 2026, is this still the case , and the 10K extra BIK exemption is on top of the 20K figure?
Click to expand...
Yeah that's how I read it as that is the 'temporary measure' introduced in 2023.
 
Dinarius said:
Are other EU governments getting involved in the EV market like ours is?
Click to expand...
Around 2020 all but one had EV incentives, that number has increased over time but most still do ‘get involved’ in one way or another, some more generous than Ireland some less so.
 
Last edited:
Thanks.

I can’t recall the exact figures, but I think that someone with €50k to spend on a car got about €5k, while someone with €20k to spend got €1k.

Isn’t this subsidising the better off?
What if the subsidies were reversed? It would promote the use of small cars…and scare the life out of the car lobby and Revenue.

D.
 
Dinarius said:
I can’t recall the exact figures, but I think that someone with €50k to spend on a car got about €5k, while someone with €20k to spend got €1k.
Click to expand...
You’d get the full €3500 SEAI grant plus full relief of the €1400 VRT due on a €20k EV. On a €50k EV you’d get the same €3500 SEAI grant but no VRT relief.

The SEAI grant steps up but from €18k or higher it’s the same amount, €3500. Over €60k and it’s €0.

The VRT relief is more susceptible to what you point out though because even though the relief is €5k, you’d only be liable for €5k VRT on a more expensive car. The relief goes to €0 if the car costs more than €50k.

€50/60k sounds like a huge sum to spend on a car to many people, but the reality is these days a large family car costs not far off that, it’s not all wealthy people in premium cars at that price point.

Personally I’d like to see the upper limits reduced over time though as it would encourage the manufacturers to reduce their prices to fit into the lower band, this has been demonstrated many times in other countries.
 
Seems to me that, whatever the upper limit, there is an incentive for the car market to price as many cars as possible at or near that price and then deduct €5k from it. I just don’t get governments interfering in the market.

D.
 
Dinarius said:
I just don’t get governments interfering in the market.
Click to expand...
Intervention is often critical to getting new desirable technologies to market, particularly if the incumbent technology has unpriced externalities, which petrol/diesel cars have by the truck load. They do need to pull back eventually though, and ideally make them more targeted as the market develops.
 
You must log in or register to reply here.
Back
Top