Michael McGrath (Cork South Central, Fianna Fail)
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I thank the Deputy. It is important that we give a clear message to businesses. To be fair, we should acknowledge that many changed the nature of the vehicles they were providing to their employees. We heard from those who were impacted negatively by the changes, but many others were not and a lot of companies did the right thing and had the resources to do so. It is important that I, as Minister, and we collectively send the message that the change and transition has to continue. The direction of Government and public policy generally is to try to incentivise the use of more environmentally friendly vehicles.

Regarding the specific tax measures, while the relief of €10,000 will be applied to the OMV vehicles liable for BIK, the other elements of the new BIK regime will remain in place. It means that even with a reduction in OMV, electric vehicles will continue to benefit from a preferential rate of BIK. For companies who want their employees to pay a lower rate of BIK, they know what needs to be done to ensure that is the case. The rates range from 9% to 22.5%, depending on mileage and fossil fuel vehicles will remain subject to higher be BIK rates of up to 37.5%. There are other measures in our taxation code that incentivise the purchase not just of energy efficient vehicles but other equipment. That is the thrust of Government policy under the climate action plan.