ELECTRIC VEHICLES:A €5,000 limit has been placed on the Vehicle Registration Tax (VRT) exemption for electric cars from May 1st under the proposed Finance Bill. Electric vehicles are currently exempt from the tax.
The exemption was due to run until December 31st, 2012. However, under the Finance Bill published yesterday, this would be changed to a rebate of up to €5,000 on the VRT due on new electric vehicles sold from May onwards.
The change means that VRT of 14 per cent will be due on most new electric cars. In reality, it is not going to change the sale price of the newly introduced electric cars such as the Nissan Leaf or Mitsubishi i-Miev, as the VRT due on these vehicles is less than the exemption limit.
Where it might impact on new car buyers is if they intend to purchase future premium electric vehicles, such as electric sports cars that are under development from manufacturers and where the VRT percentage of the purchase price would exceed the €5,000 limit.
Aside from VRT incentives in place, electric cars also qualify for a €5,000 grant, operated by the Sustainable Energy Authority of Ireland, and this remains unchanged.
