Holly Cairns (Cork South West, Social Democrats)
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99. To ask the Minister for Transport, Tourism and Sport his views on concerns expressed by visually-impaired persons in respect of e-vehicles and e-scooters. [6187/23]

Jack Chambers (Dublin West, Fianna Fail)
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The safety of all road users, and particularly those more vulnerable road users, is at the forefront of my department's work to progress legislation for light electric 'micromobility' vehicles such as e-scooters and e-bikes. I believe that e-scooters have a role to play as a form of emission-free micromobility. At the same time, they have to be legislated for in a way which will ensure the safety of e-scooter riders and of other road users. The Road Traffic and Roads Bill 2021, which has been passed by the Dáil and is currently before the Seanad, addresses e-mobility, amongst a range of other matters.

To this end, a comprehensive public consultation process was undertaken in 2020 to seek the views of a range of stakeholders including accessibility groups and advocates. A second consultation process was undertaken in 2021. Further to public consultation, a number of accessibility groups, including the NCBI, the Irish Wheelchair Association and Irish Guide Dogs for the Blind, have made independent submissions to my department.

The findings of these submissions and of both consultations have informed the development of the Bill and are being considered in the preparation of subsequent regulations. The matters of concern raised by the organisations mentioned are matters which are dealt with in regulations rather than in Acts, for all classes of vehicle. Questions of where e-scooters can be used, the speed limits which should apply to them, or whether they should have audible warning devices are matters which will be addressed in regulations after the necessary enabling powers have been provided by the Bill.

Separately, in respect of electric cars, the Deputy may wish to note that since July 2019, all electric and hybrid vehicles placed on the market in the EU, including Ireland, are required under Commission Delegated Regulation (EU) 2017/1576 to have an acoustic vehicle alerting system (AVAS) fitted that will automatically emit a noise when travelling at speeds below 20km/h and when reversing to alert pedestrians of oncoming vehicles. The device is obligatory in all new EVs since 1 July 2021.

This requirement has been given effect in Irish law by means of the European Union (Road Vehicles: Type-Approval and Market Surveillance) Regulations 2020 (S.I. No. 556 of 2020).

Duncan Smith (Dublin Fingal, Labour)
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100. To ask the Minister for Finance his views on the policy of removing the 0% benefit-in-kind rate on electric vehicles; his views on whether this policy will remove an incentive to switch to electric vehicles; and if he will make a statement on the matter. [6158/23]

Michael McGrath (Cork South Central, Fianna Fail)
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Recent Government policy has focused on strengthening the environmental rationale behind company car taxation. In Finance Act 2019, I legislated for a CO2-based BIK regime for company cars from 1 January 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.

EVs will benefit from a preferential rate of BIK, ranging from 9 – 22.5% depending on mileage. Fossil-fuel vehicles will be subject to higher BIK rates, up to 37.5%. In terms of impacts, broadly speaking this means that higher emission vehicles will experience BIK increases versus the 2022 year of assessment, while lower emission vehicles will experience a lower BIK liability depending on mileage levels. This new structure with CO2-based discounts and surcharges is designed to incentivise employers to provide employees with low-emission cars.

Reforming the BIK system to include emissions bands provides for a more sustainable environmental rationale than the continuation of the current system with exemptions for electric vehicles (EVs). This will bring the taxation system around company cars into step with other CO2-based motor taxes as well as the long-established CO2-based vehicle BIK regimes in other member states.

In addition to the above and in light of government commitments on climate change, Budget 2022 extended the preferential BIK treatment for EVs to end 2025 with a tapering mechanism on the vehicle value threshold. This means that the quantum of the relief is phased down from €50,000 in 2022, to €35,000 in 2023, €20,000 in 2024, and €10,000 in 2025.

It should also be noted that this BIK relief forms part of a broader series of very generous measures to support the uptake of EVs, including

- Vehicle Registration Tax relief of up to €5,000 for battery electric vehicles (BEVs). From January 2021, this relief is no longer available for BEVs with an Open market Selling Price of >€50,000. This is in addition to a base VRT rate of 7%, reduced from 14% in 2021.

- Home Charger Grant - Up to €600 towards the installation cost of a domestic charge point for new and second-hand BEVs or PHEVs.

- Low Motor Tax - BEVs qualify for the lowest tax band of motor tax at €120 per annum, while a plug-in hybrid vehicle (PHEV) is typically taxed at circa €170 per annum.

- BEV and PHEVs qualify for 50% and 25% toll reductions respectively up to a maximum €500 annual threshold for private vehicles and a maximum annual threshold of €1,000 for commercial vehicles

- A grant of up to €10,000 to support the purchase of a BEV in the taxi/hackney/limousine sector with an additional €2,500 available for those choosing to make their vehicle wheelchair accessible. Those scrapping older, more polluting, or high mileage vehicles are now eligible for double the normal grant if they make the switch to electric with up to €20K available for a new BEV, €25K for a new wheelchair accessible BEV and €15K for a new wheelchair accessible PHEV.

- Alternatively Fuelled Heavy-Duty Vehicle (AFHDV) Purchase Grant Scheme - grant levels under the Scheme are calculated as a percentage of the difference in price between a conventionally-fuelled diesel HDV and its alternatively-fuelled equivalent.

In summary, I am satisfied that the Government has provided a broad suite of supports for the uptake of EVs.