Providing a sustainable, low-carbon transport system is a key priority of my Department.
Introduced in 2018, the tolling scheme has been administered by Transport Infrastructure Ireland (TII) on behalf of Department of Transport.
The Scheme offers toll discounts for alternatively fuelled vehicles (up to 50,000 vehicles). BEV and PHEVs qualify for 50% and 25% toll reductions respectively up to a maximum €500 annual threshold for private vehicles and a maximum annual threshold of €1,000 for commercial vehicles (greater off-peak rates also apply to the M50 toll). It was expanded in 2020 to include toll reductions for electric motorbikes, hydrogen fuelled passenger cars and SPSVs, and heavy duty vehicles (trucks, buses and coaches) fuelled by compressed natural gas (CNG), liquefied natural gas (LNG), hydrogen or electricity.
I can confirm that the ‘Low Emissions Vehicle Toll Incentive (LEVTI) Scheme’ will conclude on the 31st of December 2023. Originally scheduled to close in 2022, LEVTI was extended until December 31st, 2023, and available for the first 50,000 eligible vehicles. With the target on track, new applications will no longer be accepted from 1st November.
This is consistent with our Climate Action Plan targets and EU regulatory requirements whereby we move Exchequer supports for fleet electrification towards building out EV charging infrastructure . This change also aligns with similar polices in European nations, where countries including Norway, Germany and France have begun to taper vehicle subsidies and shift government investment towards infrastructure. This decision is available on relevant websites and will be shared with applicants of the scheme by the tag service providers.
Ireland still compares favourably to our European counterparts with generous purchase incentives, low rates of Vehicle Registration Tax (VRT) and BIK for BEVs and a low rate of motor tax for lower emitting vehicles.
€110m was 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;
• An apartment charger scheme;
• Benefit-in-Kind tax relief for battery electric vehicles;
• Vehicle Registration Tax (VRT) relief of up to €5000 for BEVs;
• 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; and
• Low rate of annual motor tax;
Budget 2024 saw the extension of the current VRT for a further two years. 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.
In addition, there has been an extension of the EV tapering mechanism applied to BIK relief for Electric Vehicles of €35,000 to end 2025, €20,000 in 2026 and €10,000 in 2027
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.
