The 2024 Budget, recently announced by Minister for Finance Michael McGrath, brings positive news for electric vehicle (EV) motorists. It extends the VRT relief for EVs through 2025, a relief that was originally set to conclude at the end of 2023. This extension ensures that EVs valued at €40,000 or less will remain exempt from VRT, and the gradual reduction in relief for EVs with a value between €40,000 and €50,000 will persist.

In a move to provide additional incentives for electric vehicles, an extension of the EV tapering mechanism applied to BIK (Benefit-in-Kind) relief for Electric Vehicles will be introduced. This extension maintains the reduction of €35,000 until the end of December 2025, followed by a reduction to €20,000 in 2026 and again a further reduction to €10,000 in 2027. This initiative promises to further encourage the adoption of electric vehicles.

With a clear objective to promote the transition away from conventional petrol and diesel vehicles, McGrath emphasised that when combined with the extension of the universal original market value relief of €10,000, this initiative results in a comprehensive BIK reduction of €45,000 for employees with electric company vehicles in 2024.

Brian Cooke, the Director General of SIMI, expressed the organisation's approval of the extension of current VRT (Vehicle Registration Tax) and BIK reliefs for electric vehicles. He emphasised that this retention, coupled with the EV-related incentives, offers stability and clarity to both the automotive industry and the public.

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