BUDGET 2023 NO VRT INCREASE AND CONTINUATION OF ELECTRIC VEHICLE GRANT
Budget implications for the Motor Industry
Budget 2023, announced this afternoon by Minister for Finance Paschal Donohoe, and Minister for Public Expenditure and Reform Michael McGrath contains some measures specific to motoring:
- No VRT changes for cars or commercial vehicles
VAT and Excise Extensions
- Extending the current excise reduction of 21 cent per litre in respect of petrol, 16 cent per litre in respect of diesel and 5.4 cent per litre in respect of Marked Gas Oil (MGO), and the 9 per cent VAT rate for electricity and gas until 28 February 2023.
- The rate per tonne of carbon dioxide emitted for petrol and diesel will go up from €41 to €48.50 from 12 October as per the trajectory set out in the Finance Act 2020. This will mean that there will be an increase of just over two cent VAT inclusive per litre of petrol and diesel.
- Recognising the sharp cost of living challenges currently being faced by society, so the government is therefore proposing to offset this carbon tax increase with a reduction to zero of the National Oil Reserves Agency (NORA) levy.
- The NORA levy which is collected at a rate of 2 cent per litre (VAT exclusive) will help offset the carbon tax increase which means that the price at the pump will not go up as a result of taxes or levies.
Temporary Business Energy Support Scheme
- To assist businesses with their energy cost over the winter months.
Carbon Reduction Programmes
€110m is being provided towards making the switch to electric vehicles. Specifically grant support is being provided for the:
- Continuation of the purchase grant scheme for electric passenger cars, with a gradual reduction in the grant from July 2023
- Continuation and expansion of the home charging infrastructure scheme to include multi-unit dwellings
- Continuation of a grant scheme for taxi and hackney drivers with a gradual reduction in the grant from July 2023
- Continuation of an alternatively fuelled heavy goods vehicles purchase grant scheme
- Continuation of the Low Emission Vehicle Toll Incentive Scheme
- Reviewing the scheme for public point charging
- Delivering a new Shared Island Scheme for destination charging at sports clubs
- Funding research to support the further decarbonisation of transport in Ireland
Commenting on Budget 2023, SIMI Director General Brian Cooke:
“SIMI is pleased that the Government listened to the Industry and did not increase VRT in Budget 2023. In addition, the extension of the EV car SEAI grant scheme for the first half of next year will bring more potential buyers into the Electric Vehicle project, although the signal that this grant will be reduced from July is a concern. We hope the Government can re-consider this closer to the time, as any reduction could undermine sales in what is still the early stages of the EV project.
SIMI also welcomes the announcement of the Temporary Business Energy Support Scheme for employers which we hope will mitigate against rising energy costs and help to protect employment.”
Department of Transport Release Budget 2023 continues to keep costs down for commuters and ensures that transport developments can continue at pace
For Further Information:
Teresa Noone, PR & Marketing Manager, SIMI 087 792 8844 email@example.com