Dáil Éireann Debate, Wednesday - 9 November 2022
20. Deputy Éamon Ó Cuív asked the Minister for Transport the current rate of “islander” car tax; the basis on which this is paid; if cars taxed for “island only” use are exempt from undergoing the NCT; the steps that he intends taking on ensuring that it is attractive for islanders to purchase plug in hybrids or electric vehicles for island use; and if he will make a statement on the matter. [55806/22]
Amharc ar fhreagraA concessionary rate of motor tax for island vehicles was introduced in 2001. This applies to all vehicles, not just passenger cars, unless the vehicle in question has a lower annual rate of tax (e.g. motorcycles or vintage vehicles). The current annual rate for island vehicles has been set at €102 since 2013. It applies to motor vehicles which are kept and used exclusively on an offshore island to which there is no direct road or bridge access from the mainland.
In respect of vehicle testing, motor vehicles that are used exclusively on islands that are not connected to the mainland by road or bridge, and that have less than 5,000 inhabitants, are currently not subject to roadworthiness testing.
There are a number of incentives in place to encourage the purchase of low emitting vehicles including:
- Vehicle Registration Tax relief of up to €5,000 for battery electric vehicles (BEVs) for vehicles with an open market selling price of less than €50,000;
- a purchase grant scheme that provides up to €5,000 for the purchase of a private BEV and up to €3,800 for a small commercial BEV. In both cases, this applies to vehicles with a selling price of between €14,000 and €60,000; and
- a home charger grant of up to €600 towards the installation cost of a domestic charge point for new and second hand BEV or plug in hybrid vehicles.
