Pat Buckley (Cork East, Sinn Fein)
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321. To ask the Minister for Finance if he will consider whether voluntary and charitable organisations purchasing electric vehicles should be exempt from or eligible for reduced VRT. [46244/24]

Jack Chambers (Dublin West, Fianna Fail)
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Under the Finance Act 1992, Vehicle Registration Tax (VRT) is assessed on a vehicle at the time of its registration, and the way in which the tax is calculated depends on the category of vehicle involved.

VRT on Category A vehicles (generally passenger vehicles) is assessed based on the value of the vehicle and its emissions levels for carbon dioxide (CO2) and nitrogen oxide (NOx). The CO2 component of the VRT charge is a percentage of the vehicle’s Open Market Selling Price (OMSP), ranging from 7% for a vehicle with low CO2 emissions, up to 41% of the OMSP for vehicles with the highest emission levels. The NOx component of VRT is calculated using a progressive scale, ranging from €5 up to €25 per mg/km of the vehicle’s NOx emission levels. As a result, the total VRT charge for category A vehicles increases according to the emissions of the vehicle involved and its market value. Thus Category A electric vehicles already have a reduced VRT rate compared with higher emission vehicles.

Currently VRT on Category B vehicles (generally light commercial vehicles and motor caravans) is assessed at 13.3% of the OMSP of the vehicle. Finance Act 2024 introduced an emissions-based VRT system for category B vehicles which will apply from 1 July 2025. The 13.3% VRT rate on the OMSP is retained for vehicles with CO2 emissions over 120g/km, while for category B vehicles with emissions of 0g/km up to and including 120g/km, a reduced rate of 8% on the OMSP will apply. Thus Category B electric vehicles will have a reduced VRT rate from later this year.

Finance Act 2024 also amended the weight ratio requirement for commercial electric vehicles from 130 per cent to 125 per cent in order to qualify for the €200 VRT rate. From 1 January 2025 a weight ratio of 125 per cent will apply to electric commercial vehicles, with a continuation of the current 130 per cent weight ratio requirement for all other commercial vehicles.

You should also note that the Disabled Drivers and Disabled Passengers Scheme (DDPS), which is provided for by Section 92 of the Finance Act 1989 and associated Regulations, provides for repayment or remission of VRT and Value Added Tax (VAT), up to certain limits, on the purchase or adaption of a vehicle for the transport of a person with specific severe and permanent physical disabilities. This includes electric vehicles.

The Scheme is available to charitable organisations, registered with the Charities Regulator, whose purpose is to provide services to people with disabilities and who are engaged in the care and transport of disabled persons.

Full details of the Scheme, including the legislative criteria which must be met, are set out in a detailed information leaflet available on the Revenue website at .

Finally, officials from my Department continue to monitor developments in the vehicle taxation area and engage with colleagues in the Department of Transport on an ongoing basis in order to support the transition to electric vehicles. New proposals are considered and current vehicle tax policies are kept under review as part of the Tax Strategy Group and Budgetary cycle.

Pat Buckley (Cork East, Sinn Fein)
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322. To ask the Minister for Finance if charitable organisations using vehicles for public service are eligible for VRT exemptions. [46245/24]

Jack Chambers (Dublin West, Fianna Fail)
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Vehicle Registration Tax (VRT) is charged, levied, and paid under the provisions of the Finance Act, 1992. VRT is assessed on a vehicle at the time of registration in the State and the way it is calculated depends on the category of the vehicle involved. There are five vehicle VRT categories: A, B, C, D and M.

VRT on category A (generally passenger vehicles) is assessed on the basis of the value of the vehicle and its emissions levels. VRT on category B (light commercial vehicles and motorcaravans) is 13.3% of the value of the vehicle. Heavier commercial vehicles, including lorries and buses, come within category C and are charged to VRT at a flat rate of €200. Category D vehicles, which includes ambulances, fire engines, refuse carts, sweeping machines and vehicles used in the transportation of road construction machinery are charged VRT at a nil rate. Category M (motorcycles) are assessed on the basis of the cubic capacity (cc) of the engine.

While there are some exemptions and reliefs from VRT in certain situations, there are no specific legislative exemptions in the Finance Act 1992 for charitable organisations using vehicles for public service.

However, the Disabled Drivers and Disabled Passengers Scheme (DDPS), which is provided for by Section 92 of the Finance Act 1989 and associated Regulations, provides for repayment or remission of VRT and Value Added Tax (VAT), up to certain limits, on the purchase or adaption of a vehicle for the transport of a person with specific severe and permanent physical disabilities.

The Scheme is available to charitable organisations, registered with the Charities Regulator, whose purpose is to provide services to people with disabilities and who are engaged in the care and transport of disabled persons.

Full details of the Scheme, including the legislative criteria which must be met, are set out in a detailed information leaflet available on the Revenue website at .