Jennifer Carroll MacNeill (Dún Laoghaire, Fine Gael)
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300. To ask the Minister for Finance further to Parliamentary Question No. 181 of 6 July 2021, the status of hybrid vehicles and if they fall into the EV category; the position on commercial vehicles in relation to this matter; and if he will make a statement on the matter. [39111/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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In Finance Act 2019 I legislated for a CO2-based benefit-in-kind (BIK) regime for company cars from 1/1/2023. From that date the amount taxable as BIK remains determined by the car’s original market value (OMV) and the annual business kilometres driven, while new CO2 emissions-based bands will determine whether a standard, discounted, or surcharged rate is taxable. The number of mileage bands is reduced from five to four.

The BIK applied to hybrid electric vehicles will be dependent on their CO2 emissions, OMV, and annual kilometres driven. Well-performing hybrids will fall into Band A (0-59gCO2/km) and thus be liable to BIK at a favourable rate between 9%-22.5% depending on mileage.

Commercial vehicles are currently charged a flat rate of 5% BIK, and I legislated in Finance Act 2019 for an increase to 8% to take effect on 1/1/2023.