Michael McGrath (Cork South Central, Fianna Fail)
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I want to put on record - and companies know this - that there is a tapering off of BIK relief for EVs to continue into 2024 and 2025. We want companies to make change now and it is important for their employees that they would do so. On the tapering mechanism, the changes will operate in parallel with the preferential BIK treatment for EVs to the end of 2025. This means the quantum of the relief, in practice, for 2023, will go from €35,000 to €45,000, with the additional €10,000 that we are providing today coming off. As this additional relief is only applicable for 2023, the tapering of the EV BIK relief will remain at €20,000 next year and at €10,000 in 2025. It should be noted that the EV BIK extension forms part of a broader series of generous measures to support the uptake of EVs, including a reduced rate of 7% VRT; VRT relief of up to €5,000; low motor tax of €120; Sustainable Energy Authority of Ireland, SEAI, grants; discounted toll fees; and 0% BIK on electric charging. The incentives are significant but we will keep that under review and the direction of policy will not change. I want to give the message to employers that there is a reprieve for a number of months for the remainder of this year but I am not providing any guarantees on 2024 and beyond.