In Budget 2017 Finance Minister, Michael Noonan has extended tax relief for hybrid and electric cars for five more years for electric cars and two more years for hybrids.

Electric vehicles buyers are entitled VRT relief of up to €5,000. Hybrids can claim relief of €1,500, while plug-in hybrid vehicles can claim €2,500.

Also, there will be no increase in diesel tax either which will be welcomed by the industry and the Transport Industry as additional tax on diesel significantly increases the cost of running truck fleets and therefore adding to the cost of delivered good to shops and businesses.

Most observers prior to today’s announcement were predicting a substantial rise in the price of diesel at the pumps and the OECD had recommended at least an equalisation of excise rates on petrol and diesel but the Minister has decided not to take that advice and prices will remain the same.

Farmers will be happy too as no changes have been made to tax on green diesel in the budget for next year.