Dáil Éireann Debate, Tuesday - 14 November 2023
138. Deputy Cathal Crowe asked the Minister for Finance if the mileage bands relating to BIK rates (details supplied) will remain at the pre-2023 bands or if they are to revert to the proposed 2023 bands; and if he will make a statement on the matter. [50016/23]
View answerThe Government remains committed to the environmental rationale behind the current emissions-based vehicle BIK regime which has been in operation since 1 January 2023. In the current inflationary context, however, the Government recognise the difficulty experienced by some people facing BIK increases under the new regime. To that end, temporary changes to BIK made in 2023, are being extended for another year, which will help to mitigate some of the increases associated with the new emissions-based calculation.
The universal relief of €10,000 will continue to be applied to the Original Market Value (OMV) of vehicles in Category A-D in order to reduce the amount of BIK payable for an additional year to end 2024. This means that, for the purposes of calculating BIK liability, employers can reduce the OMV by €10,000. This also applies to vans and electric vehicles, however it still does not apply to cars in category E – the highest emission category. For electric vehicles, the OMV deduction of €10,000 continue to be in addition to the existing relief of €35,000 that is currently available for such vehicles, meaning that the total relief for 2024 will be €45,000.
The lower limit in the highest mileage band remains amended by way of a 4,000km reduction, so that the highest mileage band is entered into at 48,001km (see table).
These measure will remain in place until 31 December 2024.
Table 1: Updated BIK Mileage Bands
|
Business Mileage |
|
Vehicle Categories
|
||||
|
Lower limit (1) |
Upper limit (2) |
A (3) |
B (4) |
C (5) |
D (6) |
E (7) |
|
Kilometres |
Kilometres |
Per cent |
Per cent |
Per cent |
Per cent |
Per cent |
|
- |
26,000 |
22.5 |
26.25 |
30 |
33.75 |
37.5 |
|
26,001 |
39,000 |
18 |
21 |
24 |
27 |
30 |
|
39,001 |
48,000 |
13.5 |
15.75 |
18 |
20.25 |
22.5 |
|
48,001 |
- |
9 |
10.5 |
12 |
13.5 |
15 |
