Minister for Finance Michael McGrath unveiled Budget 2024 this week, featuring significant measures for the automotive industry.

Some of the key policies announced include:

1. Vehicle Registration Tax (VRT): No increases in VRT for Electric Vehicles (EVs) or Internal Combustion Engine (ICE) vehicles.
2. VRT Relief on EVs: The existing relief, which was set to expire at the end of this year, has been extended until the end of 2025. This means that EVs valued at €40,000 will continue to be exempt from VRT, with a tapering relief for vehicles between €40,000 and €50,000.
3. Benefit-in-Kind (BIK): The €10,000 deduction applied to Original Market Value Deduction for specific vehicle categories is extended for 2024.
4. Extension of the EV tapering mechanism for BIK relief for Electric Vehicles until December 31, 2025, with reductions to €20,000 in 2026 and €10,000 in 2027.
5. Combined, these extensions create a 0% BIK threshold for EVs as follows: €45,000 in 2024, €35,000 in 2025, €20,000 in 2026, and €10,000 in 2027.
6. Other motor-related taxes: Excise on petrol and diesel fuels will increase by 50% on April 1, 2024, and again by 50% on August 1, 2024. The previously scheduled Carbon Tax increase took effect on October 11.
7. Accelerated Capital Allowances for EVs have been extended for three years.

Commenting on Budget 2024, SIMI Director General Brian Cooke said:
 “SIMI welcomes the measures announced in today’s Budget, in particular the extension of the current VRT and Benefit-In-Kind (BIK) reliefs for Electric Vehicles. In addition, the retention of the current VRT regime allied with the EV reliefs provides stability and clarity to the Motor Industry and motorists at a time of great uncertainty. The EV supports underline the Government’s commitment towards the electrification of the national fleet, which is of critical important as we strive to meet our emissions’ reduction goals. We still await clarification of the ongoing investment in both the charging infrastructure and the SEAI purchase grants, which are also vital to the ongoing success of the EV project.”