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Today, we bring you a motor-related summary from yesterday’s budget announced by the Minister for Finance, Michael McGrath.
The focus of Budget 2024 was clearly centered on tax cuts, some spending increases, and measures to address cost of living concerns. This meant there were limited measures for the Motor Industry generally, but we did see some key benefits around VRT relief and BIK extensions.
We have summarised the key aspects for you below:
Benefit-in-Kind (BIK)
Where company cars are concerned, the Government is extending the temporary universal relief of €10,000 to the Original Market Value, which maintains the current position.
To encourage the use of electric cars for company car purposes, the existing €35,000 Original Market Value will be maintained for 2024 and 2025 – the planned reduction of the preferential BIK relief for company electric cars is suspended.
An employee with an electric company vehicle will benefit from an overall BIK Original Market Value relief of €45,000 in 2024.
VAT & Excise Extensions
We are delighted that there are no VRT increases for either EV or ICE Vehicles, and welcome the extension of the VRT relief for battery electric vehicles until the end of 2025.
The Government also confirmed an extension of the current petrol & diesel excise reliefs which were due to expire on October 31st. The outstanding amounts of 8c on petrol, 6c on diesel and 3.4c on Marked Gas Oil, will be restored in two equal instalments April 1st 2024 and August 1st 2024.
Carbon Tax
The rate per tonne of carbon dioxide emitted for petrol and diesel will go up from €48.50 to €56 from 11 October as per the trajectory set out in the Finance Act 2020.
Accelerate Captial Allowances
the accelerated capital allowances scheme for energy-efficient equipment will be extended for a further two years.
Electric Vehicles Supports
The Government has allocated funding of €102m to promote electric vehicles including grants and infrastructure measures.