Brendan Griffin
Question:192. Deputy Brendan Griffin asked the Minister for Finance if there will be any changes to VRT on electrical vehicles from January 2024 for somebody purchasing a new car. [51904/23]
View answerTuesday, 28 November 2023
Questions (192)
Written answers
In response to the Deputy's question, he should note that I did not make any changes to the structure and rates of Vehicle Registration Tax as part of Budget 2024; however, I did extend the VRT relief which applies to electric vehicles by 2 further years.
This VRT relief for electric vehicles was due to expire on 31 December 2023, but has been extended to 31 December 2025. Battery Electric Vehicles (BEVs) with an Open Market Selling Price (OMSP) of up to €40,000 will now continue to be granted VRT relief of up to €5,000, and BEVs with an OMSP of greater than €40,000 but less than €50,000 will receive a reduced level of relief. This VRT relief remains the main point-of-purchase tax incentive for BEVs and electric vans which 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.
This is part of a wider suite of very generous measures to encourage the uptake of BEVs, including a low VRT rate of 7% of the OMSP, the low rate of motor tax of €120 per annum, SEAI grants, preferential treatment for vehicle BIK, discounted tolls fees, and 0% BIK on electric charging. The extension of the relief ensures that many BEVs purchased in the next two years will pay either no VRT or a much reduced amount depending on the value of the car.