Key Highlights for Drivers in Ireland from Budget 2024
Positive News for the Motor Industry
In a significant announcement this afternoon, Minister for Finance unveiled Budget 2024, which includes several noteworthy measures impacting the motor industry in Ireland. Let’s delve into the key highlights that will directly affect drivers across the country.
VRT Stability: No Increases for EVs or ICE Vehicles
One of the reassuring aspects for drivers is the absence of increases in Vehicle Registration Tax (VRT) for both Electric Vehicles (EVs) and Internal Combustion Engine (ICE) vehicles. This decision maintains stability in the automotive market.
VRT Relief Extension for EVs
A critical development is the extension of VRT relief on EVs. Initially set to expire at the end of this year, the relief has been prolonged for an additional two years, now applicable until the end of 2025. This means that EVs with a value of €40,000 will continue to be exempt from VRT. whilst the tapering of relief between €40,000 and €50,000 will also remain in effect.
Benefit-in-Kind (BIK) Continuity
Budget 2024 maintains the €10,000 deduction applied to the Original Market Value Deduction for certain vehicle categories, extending it for the year 2024. The EV tapering mechanism for BIK relief has been extended until December 31, 2025, with reductions to €20,000 in 2026 and €10,000 in 2027.
Continued Support for EVs
A notable move is the extension of Accelerated Capital Allowances on Electric Vehicles (EVs) for an additional three years. This emphasizes the government’s commitment to promoting the electrification of the national fleet.
In response to Budget 2024, Brian Cooke, Director General of The Society of the Irish Motor Industry (SIMI), expressed satisfaction with the announced measures. He highlighted the importance of the extended VRT and BIK reliefs for EVs, providing stability and clarity to both the Motor Industry and motorists during a time of uncertainty. Cooke emphasized the government’s commitment to the electrification of the national fleet, stressing the ongoing need for investment in charging infrastructure and SEAI purchase grants for the continued success of the EV project.
Stay tuned for further updates as the implications of Budget 2024 unfold, shaping the landscape for the motor industry in Ireland.
Other Tax-Related Measures
The budget includes extensions for excise reliefs on petrol and diesel, which were set to expire on October 31st. Additionally, there will be a 50% increase in excise on April 1st, 2024, and another 50% increase on August 1st, 2024. Furthermore, the scheduled increase in Carbon Tax from October 11th remains unchanged.
Budget 2024, VRT Relief, Benefit-in-Kind, EVs, Irish Motor Industry, Carbon Tax, Excise Reliefs, Electric Vehicles, Budget Measures, Automotive News,
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