With the announcement of the Irish Budget 2025, the transition to Electric Vehicles (EVs) continues to be a key focus. Here are some highlights of how the new measures are supporting the shift to sustainable transport:
Benefit-in-Kind (BiK) for EVs:
- A 1-year extension of the temporary €10,000 relief on Original Market Value (OMV) for Category A-D vehicles, now extended to 31 December 2025. This adds to the existing €35,000 EV relief.
- A new BiK exemption for the installation of EV chargers at the homes of employees and directors!
Vehicle Registration Tax (VRT):
- New VRT amendment for BEV commercial vehicles, allowing them to qualify for the €200 VRT rate.
- Lower 8% VRT rate for commercial B vehicles with CO2 emissions <120g/km, promoting more eco-friendly fleet purchases.
⚡ Capital Allowances & Emissions:
- Reduction of the low-emitting company car classification to <141g/km from January 2027.
- €12,000 allowable limit for vehicles emitting 121-140g/km, encouraging EV adoption in the company car sector and building a strong second-hand EV market.
Carbon Tax:
- The Carbon Tax on petrol and diesel will increase from €56.00 to €63.50 per tonne of CO2 from October 2025. This change is expected to bring in €951 million in additional revenue to be reinvested in sustainability projects.
The push towards cleaner transport continues, and these measures are paving the way for greater EV adoption in Ireland, making it easier for both individuals and businesses to embrace a greener future!
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