SIMI WELCOMES SUPPORT FOR ELECTRIC VEHICLES IN BUDGET 2024

Published on 21st May 2024 at 21:54

Budget 2024, announced this afternoon by Minister for Finance Michael McGrath, contains some measures specific to motoring: 

Budget Measures

  • VRT – no increases in VRT for EVs or ICE vehicles.
  • VRT Relief on EVs – this was due to expire at the end of this year, but has been extended for a further two years out to the end of 2025. This means EVs with a value of €40,000 will continue to pay no VRT, while the tapering relief between €40,000 and €50,000 also remains in place.
  • Benefit-in-Kind
    • The €10,000 deduction applied to Original Market Value Deduction for certain categories of vehicles is extended for 2024.
    • Extension of EV tapering mechanism applied to BIK relief for Electric Vehicles of €35,000 to 31/12/2025, €20,000 in 2026 and €10,000 in 2027
    • When the two extensions above are combined the 0% threshold for BIK on EVs will be:
      • €45,000 in 2024 (the same as 2023)
      • €35,000 in 2025
      • €20,000 in 2026
      • €10,000 in 2027
  • Other motor related taxes
    • Excise on petrol/diesel – extension of reliefs due to expire on Oct 31st
      • Increase will now be - 50% on April 1st 2024; 50% on Aug 1st 2024.
    • Increase in Carbon Tax from Oct 11th as scheduled
    • Accelerated Capital Allowances on EVS – extended for 3 years

Commenting on Budget 2024, SIMI Director General Brian Cooke:
“SIMI welcomes the measures announced in today’s Budget, in particular the extension of the current VRT and Benefit-In-Kind (BIK) reliefs for Electric Vehicles. In addition, the retention of the current VRT regime allied with the EV reliefs provides stability and clarity to the Motor Industry and motorists at a time of great uncertainty. The EV supports underline the Government’s commitment towards the electrification of the national fleet, which is of critical important as we strive to meet our emissions’ reduction goals. We still await clarification of the ongoing investment in both the charging infrastructure and the SEAI purchase grants, which are also vital to the ongoing success of the EV project.”

For further information: Teresa Noone, SIMI, Tel: 087 7928844  Email tnoone@simi.ie