Oireachtas Joint and Select Committees

Wednesday, 5 November 2025

Select Committee on Finance, Public Expenditure, Public Service Reform and Digitalisation, and Taoiseach

Finance Bill 2025: Committee Stage

2:00 am

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)

I will make two points. The removal of the OMV applies to all cars. It applies to electric vehicles as well. The intent is not to try to make people worse off but I accept that it will, over a number of years, have an effect on people and the cost involved in the running of cars. While we are not where we need to be with the availability of electric vehicles and the reduction of carbon emissions through the use of private cars, in the absence of measures like this, we could even be worse off and further away. On the point the Deputy made about comparing A1 with category C or D, he is correct that category D, for 48,000 miles and above, is at 13.5%. The corresponding rate for A1 is 6%.

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