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Electric Vehicles

Dáil Éireann Debate, Tuesday - 26 April 2022

Tuesday, 26 April 2022

Questions (403)

Darren O'Rourke

Question:

403. Deputy Darren O'Rourke asked the Minister for Transport if he has discussed with his colleague the Minister for Finance ways to overcome VAT and custom barriers on electric vehicle imports now in place due to Brexit in order to encourage the importation of second-hand electric vehicles from Britain to help build a second hand electric vehicle market here; and if he will make a statement on the matter. [20668/22]

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Written answers

This matter of VAT and custom barriers has arisen due to the UK leaving the EU. Overall, policy responsibility for taxation lies with the Minister for Finance. However this Department is considering and reviewing ways to expand the range of measures available to support the importation of EVs as well as specific measures targeting the growth of the second hand market.

The Department is also reviewing alternative provisions such as converting ICE vehicles to EVs. For the moment the Department has been advised that this is not feasible at scale. Officials will keep this technology under review.  

I am acutely aware that the cost of electric vehicles remains an issue for many consumers and that  supply chain issues globally have also proven difficult. These have been exacerbated by international events.

Ireland is at the beginning of its transition to private electric transport. Within a few years I anticipate there will be a viable second hand market that will provide a more affordable pathway to the purchase of an EV. In addition, the motor industry is planning to bring more affordable electric vehicles onto the market.  Notwithstanding this, I am taking steps to accelerate the establishment of a second hand EV market in Ireland. 

My Department convened the Electric Vehicle Policy Pathway (EVPP) Working Group to produce a roadmap to achieving the 2030 EV target. This Group considered a variety of regulatory, financial, and taxation policies to accelerate EV adoption. The Group also examined the issue of price parity between EVs and ICE vehicles and found that parity in respect of the Total Cost of Ownership is likely to be achieved later on this decade, driven by falling battery prices and savings due to economies of scale. 

In the meantime, in order to support the transition to EVs, the Group recommended that the generous suite of EV supports already in place in Ireland should be retained until at least end-2022. Additional measures to further incentivise EVs and/or disincentivise fossil fuelled vehicles will also be necessary. Cost-effective, targeted policy supports should continue to be developed and strengthened over the coming years. 

An Implementation Group has been established to progress the recommendations and consider further potential measures and barriers to the adoption of the EVs. It will also examine the creation of a second hand market. This Group will report on its progress to Government in Q4 of this year.  

In addition, work is underway to establish Zero Emission Vehicles Ireland as a matter of priority. This office will co-ordinate the implementation of existing and future EV measures and infrastructure.  Our objective is to develop and refine cost-effective, targeted policy supports over the coming years.

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