Patrick Costello (Dublin South Central, Green Party)
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117. To ask the Minister for Finance if, given the drop in EV car sales and the requirement of carbon reduction under the Climate Action and Low Carbon Development Act 2015, he will in Budget 2025 reinstate the benefit-in-kind exemption on EVs; and if he will make a statement on the matter. [38799/24]

Jack Chambers (Dublin West, Fianna Fail)
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Finance (No.2) Act 2023 extended the benefit-in-kind (BIK) tapered relief available for electric vehicles (EVs) to 2027. This means that for an electric car/van made available for an employee’s private use during the years 2024 to 2027, the cash equivalent will be calculated based on the actual original market value (OMV) of the vehicle, reduced by:

• €35,000 in respect of vehicles made available in the 2024 and 2025 year of assessment;• €20,000 in respect of vehicles made available in the 2026 year of assessment; and• €10,000 in respect of vehicles made available in the 2027 year of assessment.

The tapered relief is in addition to the universal temporary €10,000 reduction applied to the OMV of cars in Category A, B, C and D, all vans and EVs (cars and vans) to end-2024. This means that for the purposes of calculating the BIK liability on an employer-provided car, employers can reduce the OMV by €10,000.

When the €10,000 reduction above is added to the existing €35,000 reduction, the total OMV reduction for EVs in 2024 is €45,000. Therefore, EVs with an OMV of less than €45,000 have no BIK liability, while those with a higher OMV can reduce the taxable amount by €45,000.

In relation to whether any changes to the current BIK taxation situation will be considered, the Deputy will be aware that it is a longstanding practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.