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Budget 2021 - EV tax and incentive changes

  • 13-10-2020 11:35am
    #1
    Registered Users Posts: 5,478 ✭✭✭ the_amazing_raisin


    So it looks like motor tax and vrt are on the hook to be reformed today. The general consensus seems to be that ICE vehicles will be hit hard but I reckon EVs won't get out unscathed either.

    Anyone want to take a guess at what will happen?

    Here's my predictions based on the paper released last month

    SEAI grants will remain unchanged, maybe taper the grant above cars valued €50k or more

    Motor tax cut to €100 per year

    VRT rate of 7% for EVs with the €5k rebate to be tapered above €40k omsp to nothing at €50k.

    So I'd be expecting higher value EVs to shoot up in price by several grand. 7% on top of €50k gives a tax of €3500. Under the old regime this would have been €2000, a €1500 increase

    Mod Edit: Kcross put together a table with the VRT changes https://www.boards.ie/vbulletin/showpost.php?p=114945857&postcount=145


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Comments

  • Registered Users Posts: 2,928 ✭✭✭ eagerv


    So it looks like motor tax and vrt are on the hook to be reformed today. The general consensus seems to be that ICE vehicles will be hit hard but I reckon EVs won't get out unscathed either.

    Anyone want to take a guess at what will happen?

    Here's my predictions based on the paper released last month

    SEAI grants will remain unchanged, maybe taper the grant above cars valued €50k or more

    Motor tax cut to €100 per year

    VRT rate of 7% for EVs with the €5k rebate to be tapered above €40k omsp to nothing at €50k.

    So I'd be expecting higher value EVs to shoot up in price by several grand. 7% on top of €50k gives a tax of €3500. Under the old regime this would have been €2000, a €1500 increase


    I think anyone who already owns a higher price EV will be happy enough..
    I cannot see them hitting diesel drivers hard, probably add 2Cents or less per litre and make a big thing of it.:)
    Cheaper EVs will probably be a bit cheaper (I definitely bought the wrong time..:))


  • Registered Users Posts: 5,478 ✭✭✭ the_amazing_raisin


    eagerv wrote: »
    I think anyone who already owns a higher price EV will be happy enough..
    I cannot see them hitting diesel drivers hard, probably add 2Cents or less per litre and make a big thing of it.:)
    Cheaper EVs will probably be a bit cheaper (I definitely bought the wrong time..:))


    I think I should probably have waited before ordering an ID.4 :(


    I'd say they'll hit VRT but also introduce some 'temporary' reliefs which they can get rid of at any time, so the impact will be minimised.


    It's easier politically to get rid of reliefs and grants than to raise taxes


  • Registered Users Posts: 5,478 ✭✭✭ the_amazing_raisin


    Well looks like Paschal is in full swing. Lets see what he's come up with

    RTE player is of course failing every 2 seconds but oireachtas tv is working fine
    https://www.oireachtas.ie/en/oireachtas-tv/oireachtas-tv-channel/


  • Moderators Posts: 11,944 ✭✭✭✭ Black_Knight


    Regarding vet relief.
    Tapered relief for bev.
    No relief for phev, it will just expire.


  • Registered Users Posts: 5,478 ✭✭✭ the_amazing_raisin


    So it looks like VRT relief on PHEVs and Hybrids will be stopped and relief on BEVs will be tapered.

    According to Paschal, given the lower rate there will be almost no impact. Need to see the calculations before I'll believe that.

    New motor tax rates based on WLTP from next year, without the rate bands we don't know how this will impact EVs but possibly a reduction is in order


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  • Registered Users Posts: 4,304 ✭✭✭ SleetAndSnow


    Looks like no extension for the BIK scheme for company cars?


  • Moderators, Social & Fun Moderators Posts: 12,358 Mod ✭✭✭✭ AndyBoBandy


    A third Motor Tax table for cars registered from 1 January 2021 is being opened to take account of the introduction of the WLTP emissions test.

    I take it that's new 2021 registered BEV Motor Tax reduced to 0 then?????? :pac::pac:


  • Registered Users Posts: 10,344 ✭✭✭✭ MJohnston


    I'm going to stake out a prediction here — the expiration of VRT relief for BEVs will see a reduction in BEV prices from dealers.


  • Moderators Posts: 11,944 ✭✭✭✭ Black_Knight


    So it looks like VRT relief on PHEVs and Hybrids will be stopped and relief on BEVs will be tapered.

    According to Paschal, given the lower rate there will be almost no impact. Need to see the calculations before I'll believe that.

    New motor tax rates based on WLTP from next year, without the rate bands we don't know how this will impact EVs but possibly a reduction is in order

    Reduction in EV motor tax? Can't imagine that. It's only €120 already.


  • Registered Users Posts: 1,326 ✭✭✭ baldshin


    Reduction in EV motor tax? Can't imagine that. It's only €120 already.

    Free in the UK....we can hope!


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  • Registered Users Posts: 5,478 ✭✭✭ the_amazing_raisin


    Reduction in EV motor tax? Can't imagine that. It's only €120 already.


    According to the paper published it could be reduced to €100. Still waiting to see if that happens

    https://assets.gov.ie/86999/d525b314-3751-4936-83b8-5084fe6e4263.pdf


  • Moderators, Sports Moderators Posts: 15,645 Mod ✭✭✭✭ slave1


    €20 off, hardly a meaningful incentive:rolleyes:


  • Registered Users Posts: 3,145 ✭✭✭ Kramer


    So it looks like VRT relief on PHEVs and Hybrids will be stopped and relief on BEVs will be tapered.

    It'll be ridiculous if they drop all incentives for PHEVs. Hybrids are just a natural improvement of traditional ICE engines. PHEVs, used well, can really help reduce emissions & act as a stepping stone towards full BEV, for sceptics.

    A 400hp PHEV that can run all week commuting, with near zero emissions, shouldn't be disincentivised at this point, until I've gotten my new X5 45e :D.


  • Moderators Posts: 11,944 ✭✭✭✭ Black_Knight


    According to the paper published it could be reduced to €100. Still waiting to see if that happens

    https://assets.gov.ie/86999/d525b314-3751-4936-83b8-5084fe6e4263.pdf

    Between that €20 and the €60 I'll get back with the working from home tax claim I might just treat myself to a weeks shop.


  • Registered Users Posts: 10,344 ✭✭✭✭ MJohnston


    slave1 wrote: »
    €20 off, hardly a meaningful incentive:rolleyes:

    Less an incentive from the reduction, more just widening the gap between EVs and ICEVs


  • Moderators, Social & Fun Moderators Posts: 12,358 Mod ✭✭✭✭ AndyBoBandy


    slave1 wrote: »
    €20 off, hardly a meaningful incentive:rolleyes:


    I can hear Tesla, VW, Hyundai, Kia and all the rest ramping up production of RHD cars as we speak.....


  • Registered Users Posts: 5,478 ✭✭✭ the_amazing_raisin


    slave1 wrote: »
    €20 off, hardly a meaningful incentive:rolleyes:


    I'll take it an enjoy my takeaway :D


  • Registered Users Posts: 10,344 ✭✭✭✭ MJohnston


    Kramer wrote: »
    ICE engines

    Drive your ICE engine to the ATM machine where you enter your PIN number :pac:


  • Moderators, Education Moderators Posts: 1,857 Mod ✭✭✭✭ Slaanesh


    When do they actually publish the figures? This evening?


  • Registered Users Posts: 5,478 ✭✭✭ the_amazing_raisin


    MJohnston wrote: »
    I'm going to stake out a prediction here — the expiration of VRT relief for BEVs will see a reduction in BEV prices from dealers.


    It's based on OMSP, so it'd make sense for dealers to drop the price on marginal cars around the €40k mark


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  • Registered Users Posts: 13,622 ✭✭✭✭ JPA


    It's a gesture, diesel and petrol go up, EV tax goes down.
    Maybe it will make people think.


  • Registered Users Posts: 5,478 ✭✭✭ the_amazing_raisin


    Looks like no extension for the BIK scheme for company cars?


    Wasn't mentioned but the ACA scheme will continue


  • Registered Users Posts: 8,305 ✭✭✭ Royale with Cheese


    Looks like no extension for the BIK scheme for company cars?

    It still has two years to run. They won't look at it until at least next year, or more likely in October 2022 when we'll all then have 6 weeks to get rid of our EVs before they completely gouge us for BIK.


  • Registered Users Posts: 5,478 ✭✭✭ the_amazing_raisin


    JPA wrote: »
    It's a gesture, diesel and petrol go up, EV tax goes down.
    Maybe it will make people think.


    Largely yes, they're trying to incentivise people to move over and get away from grants & rebates. I'm guessing the VRT move is part of that


    Also, EVs often come under fire for giving taxpayer money to high end EV owners. Tapering the relief above a value makes sense in this case. I'd prefer if they'd picked a higher number, more like €50k, as many longer range EVs are priced above this value (also, because I'm selfish :D)


  • Registered Users Posts: 5,478 ✭✭✭ the_amazing_raisin


    It still has two years to run. They won't look at it until at least next year, or more likely in October 2022 when we'll all then have 6 weeks to get rid of our EVs before they completely gouge us for BIK.


    Better to get an EV now so it's worthless from a BIK standpoint by 2022 then


  • Registered Users Posts: 5,478 ✭✭✭ the_amazing_raisin


    Slaanesh wrote: »
    When do they actually publish the figures? This evening?


    I'm hoping so, want to get this over and done with


    The proposed rate for EVs is 7% of OMSP, we'll see if that was the one they went with


  • Registered Users Posts: 5,856 ✭✭✭ CoBo55


    MJohnston wrote: »
    Drive your ICE engine to the ATM machine where you enter your PIN number :pac:

    While charging with AC current...


  • Moderators, Education Moderators Posts: 1,857 Mod ✭✭✭✭ Slaanesh


    I'm trying to get a Model 3 in Jan 2021. This could spur me to get one sooner, depending on the result.


  • Registered Users Posts: 4,522 ✭✭✭ copeyhagen


    price of petrol and diesel going up also?


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  • Registered Users Posts: 6,391 ✭✭✭ jhegarty


    copeyhagen wrote: »
    price of petrol and diesel going up also?


    It is from the carbon tax.


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