Jack Chambers (Dublin West, Fianna Fail) | Oireachtas source

-----with immediate effect.

BANK LEVY

I will extend the bank levy for a further year, with a target yield of €200 million. It remains appropriate that the sector continues to make a contribution to the Irish economy following the support it received during the financial crisis.

STAMP DUTY ON HIGH VALUE RESIDENTIAL PROPERTY

I have decided to increase the rate of stamp duty applicable to residential property valued above €1.5 million to 6% with effect from tonight. The existing rate of 1% will continue to apply to values up to €1 million, and 2% on values above €1 million, with a third rate of 6% to apply to any value in excess of €1.5 million, with immediate effect. Normal transitional arrangements will apply for transactions in process.

VACANT HOMES TAX

It is also important that we maximise the use of existing housing stock. Therefore, I have decided to increase the rate of the vacant homes tax from five to seven times the property's existing local property tax rate. The increase will take effect from the next chargeable period, commencing this November.

CLIMATE MEASURES

This Government has been responsible for a step-change in Ireland's climate actions and as the threats from climate change continue to manifest themselves, I am pleased to announce several climate-related tax measures in budget 2025.

VRT ISSUES

I am making a VRT amendment in respect of battery electric commercial vehicles so that they can qualify for the €200 VRT rate. Currently, due to their battery weight, BEVs are at a competitive disadvantage compared to their fossil-fuelled counterparts, and cannot qualify for this relief. Consequently, this amendment will bring them within its scope.

I am also introducing an emissions-based approach to VRT for B commercial vehicles. This measure will provide for a lower 8% rate for category B vehicles with CO₂ emissions of less than 120 grams per kilometre with a view to encouraging the purchase of such vehicles.

I am also providing for the accelerated capital allowances scheme for gas and hydrogen-powered vehicles to be extended for a further year. This will allow the Department of Transport to review the scheme to ensure it meets the needs of the heavy transport sector as it addresses the challenge of decarbonisation.

EMISSION THRESHOLDS

In relation to emission thresholds for vehicle capital allowances, I am planning to redefine the classification of a low emitting company car by reducing the maximum emission levels for qualifying for this relief for capital allowances purposes from less than 156 grams per kilometre to less than 141 grams per kilometre with effect from 1 January 2027. The rationale for the 2027 commencement date is to provide adequate notice to companies who provide such cars to their employees. This measure is designed to incentivise the uptake of EVs in the company car sector which will over time assist the acceleration of a second-hand EV market.

CARBON TAX

The rate per tonne of carbon dioxide emitted for petrol and diesel will go up from €56 to €63.50 from 9 October as per the trajectory set out in the Finance Act 2020. For other fuels, the rate increase will take place in May 2025, after the winter home-heating season. As per the commitment in the programme for Government, and as noted with approval by the ESRI, revenue raised from this increase in carbon tax is recycled to ensure vulnerable persons are protected from unintended impacts of the tax increase,-----

See this speech in context