Budget Summary 2024

Written by Rachel O'Toole

5 mins read

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.

VRT & 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.

You may also like

How Price, Policy and Competition Are Rewiring Ireland’s EV Future 8 mins read

After a sharp decline in electric vehicle sales in 2024, the market is showing signs of recovery as 2025 reaches its midpoint. But the...

Driver's App - Summer Competition 5 mins read

Summer is here and to celebrate our recent award for the NiftiBusiness Driver's App in the Mobile App Excellence Category at the National...

The War on Car Theft: Can AI Help? 8 mins read

Over the past decade, as vehicle security systems have grown more sophisticated, criminals have kept pace, exploiting digital...

What is HVO Fuel - and Should Your Fleet Be Using It? 7 mins read

As companies and fleet managers continue to push for more sustainable transport solutions, many are exploring not only the transition to...