Written answers

Thursday, 9 February 2023

Department of Finance

Electric Vehicles

Photo of Holly CairnsHolly Cairns (Cork South West, Social Democrats)
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125. To ask the Minister for Finance the position regarding the fuel grant element of the disabled drivers and passengers scheme recipients if a disabled driver purchases an electric car; and if he will make a statement on the matter. [6409/23]

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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The Disabled Drivers & Disabled Passengers Scheme (DDS) provides relief from VRT and VAT on an adapted car, as well as an exemption from motor tax and an annual fuel grant. Subject to meeting vehicle and adaptation conditions, electric vehicles can avail of DDS provisions.

Under DDS provisions, the reliefs from VRT and VAT are generous in nature amounting to up to €10,000, €16,000 or €22,000, depending on the level of adaption required for the vehicle. There is no differentiation between electric and other vehicles in terms of available VRT/VAT relief.

Section 135C(3)(b) of the Finance Act 1992 separately provides that a Category A series production electric vehicle can avail of relief of up to €5,000 on the VRT due. Thus the amount of VRT due or paid on an electric vehicle may be lower than the maximum DDS relief permitted. In such cases the VRT relief provided through the DDS will equate to the actual VRT due or paid. VAT refunds are provided regardless of the type of vehicle.

DDS Scheme recipients with a petrol or diesel vehicle may claim payment of a fuel grant. The fuel grant covers the excise tax elements of petrol, diesel and liquefied petroleum gas (LPG). It is based on a per litre rate of €0.636 for petrol, €0.535 for diesel and €0.130 LPG in respect of the mineral oil taxes applying to these products. An annual maximum of 2,730 litres applies in respect of a driver or passenger, and 4,100 litres in respect of an organisation.

As electricity supplied for household use is not subject to excise tax, there is no provision under the DDS to cover electricity used to recharge electric vehicles.


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