Dáil Éireann Debate, Tuesday - 3 October 2023
200. Deputy Richard Bruton asked the Minister for Transport the supports in subsidies and VRT concessions which will be available to the purchaser of electric vehicles from the start of 2024, both hybrid and fully electric. [42424/23]
View answerThe Government has committed significant funding to support zero and low emitting vehicles through the National Development Plan, which currently includes an allocation of almost €500 million for the period 2021-2025 and additional support from the Climate Action Fund, the Shared Island Fund and the EU Just Transition Fund.
€110m has been allocated in 2023 to ensure the continued transition to electric vehicles which includes funding for EV grants and EV charging infrastructure. This underpins the Government’s commitment to making electric vehicles accessible to all.
Current financial supports from ZEVI, and where applicable with support from the Department of Finance, for the transition to electric vehicles and for the rollout of electric vehicle charging infrastructure include:
- A purchase grant for battery electric vehicles (BEVs);
- A Home Charger purchase grant scheme - up to €600;
- An apartment charger scheme;
- Benefit-in-Kind tax relief for battery electric vehicles;
- eSPSV grant scheme – a grant for taxi drivers to make the switch to an EV;
- AFHDV grant scheme – a grant for HDVs to bridge the gap between a low emission vehicle and a fossil fuel vehicle;
- Low rate of annual motor tax; and
- Tolling reductions of 50% for battery electric vehicles and 25% for plug-in hybrid electric vehicles.
These and related infrastructure supports will continue to incentivise the switch to electric vehicles as well as enabling the expansion of a fast and rapid electric vehicle charging network to stay ahead of demand.
There is currently a €5,000 VRT relief for BEVs and electric vans only that is due to expire at the end of 2023. The relief begins to taper off at an Open Market Selling Price (OMSP) of €40,000, ending at €50,000; this allows for a fairer VRT system in-keeping with the polluter pays policy that also ensures that the relief is focused on the more affordable price end of the market. Revenue statistics from 2022 show that the majority of BEVs registered had an OMSP of less than €50,000, meaning 53 per cent were able to avail of the relief. There is not an equivalent relief for plug-in hybrid vehicles however as they are low emission vehicles, they pay a lower rate of VRT compared with higher emission vehicles.
Regarding any future decisions, as the Deputy will be aware, it is a practice of the Minister not to comment, in advance of the Budget, on any matters that might be the subject of Budget decisions.
