Overall, electric cars remain more expensive. While the changes announced to the treatment of electric cars are helpful, it is not an incentive to get half the population to drive electric.

Benefit in kind

No details were given in the Budget; we have to wait for the Finance Bill to learn more about the extension of the zero rate of benefit in kind on electric vehicles. The move to an environmental rationale for taxing commercial vehicles provided to employees from their employers will also be detailed in the Finance Bill.

Vehicle Registration Tax

There will be a change in the way vehicle emissions will be taxed going forward. The 1% diesel surcharge introduced on vehicle registration tax (‘VRT’) last year is being replaced by a nitrogen oxide (NOx) emissions-based charge that will be applied to all new cars and used imports from January 2020. For non-hybrid vehicles, a 1% surcharge for diesel passenger vehicles registering in Ireland will apply across all VRT bands from 1 January 2019. However, VRT relief for conventional hybrids and plug-in electric hybrids is being extended and will continue until the end of 2019. The net tax take from these two measures is an extra €9 million for a full year.

Electric Vehicle Infrastructure

While electric vehicle infrastructure remains expensive, even with the additional €3 million already given, more funding is to be provided to double the number of local authority electric car charging points and to support the installation of communal charge points at apartment blocks, taxi ranks and other transport hubs.