The following are the key motor related issues contained in Minister Noonan’s Budget issued yesterday afternoon (11th October).
- VRT relief on electric vehicles extended until 31 December 2021.
- VRT relief on hybrid electric and plug-in hybrid vehicles extended until 31 December 2018.
- The SEAI Grant of €5,000 has been extended for electric vehicles, hybrids and plug-in vehicles.
VAT: No changes to VAT.
Motor Tax: No increases to Road Tax rates.
Fuel Taxation: No increases in fuel duties.
Alan Green, SIMI President, said the following about the Budget for 2017:
“The Budget today was a careful and conservative one which has not increased the taxation on most consumers and will deliver some increase in take-home pay with the USC reduction. For the Motor Industry, the good news is that electric vehicle VRT and SEAI Grant supports have been extended for 5 years while those for Hybrid and Plug-In Hybrid vehicles have been extended for 2 years. While there were no additional supports provided for in relation to seeking to increase the level of electric car sales there was also no increase in taxes on diesel fuels or in diesel vehicles as had been mooted by some commentators. Overall we would have to see it as a satisfactory Budget that has focused on stability and carefully supporting the continuing process of recovery in the new Brexit-dominated economic situation.”
Full details of the Budget are available here: www.budget.gov.ie