The 2024 Budget, announced yesterday by Minister for Finance Michael McGrath, seemed to contain a wealth of different measures covering all sectors, but look at the detail and the changes in the automotive sector are relatively limited. 

Industry body, the SIMI has broadly welcomed the motor industry budget measures which are:  

• VRT – no increases in VRT for EVs or ICE vehicles.
• VRT Relief on EVs – this was due to expire at the end of this year, but has been extended for a further two years out to the end of 2025. This means EVs with a value of €40,000 will continue to pay no VRT, while the tapering relief between €40,000 and €50,000 also remains in place. 
• Benefit-in-Kind - The €10,000 deduction applied to Original Market Value Deduction for certain categories of vehicles is extended for 2024.
• Extension of EV tapering mechanism applied to BIK relief for Electric Vehicles of €35,000 to 31/12/2025, €20,000 in 2026 and €10,000 in 2027
• Excise on petrol/diesel – extension of reliefs due to expire on Oct 31st, Increase will now be - 50% on April 1st 2024; 50% on Aug 1st 2024.
• Increase in Carbon Tax from Oct 11th as scheduled
• Accelerated Capital Allowances on EVS – extended for 3 years 

Commenting on Budget 2024, SIMI Director General Brian Cooke said, “SIMI welcomes the measures announced in today’s Budget, in particular the extension of the current VRT and Benefit-In-Kind (BIK) reliefs for Electric Vehicles. In addition, the retention of the current VRT regime allied with the EV reliefs provides stability and clarity to the Motor Industry and motorists at a time of great uncertainty.”

It is notable that although duty increases on fuel have been put off, the increase in carbon tax will add some 3 cents a litre to pump prices today. On top of recent increases this will edge the price of a litre of fuel further towards €2 and will cause many drivers to restrict their vehicle use further. 

Independent aftermarket businesses, which are huge Irish employers, received very little in the way of support to cope with rising costs, the lack of skilled labour, or indeed the need for EV training. 

A €250 million temporary support package for small business was announced by Minister for Public Expenditure Paschal Donohoe to support businesses with cost-of-living pressures. However, there was no detail announced about this measure leaving small businesses in the dark about how they can claim any benefit.