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What can motorists expect from Budget 2018

A number of changes to the Tax system are being considered as options for Budget 2018 writes Geraldine Herbert

1) The plan to equalise the excise duty on petrol and diesel and close the fuel-tax gap is probably the most likely. The OECD have recommended  an equalisation of excise rates on petrol and diesel the UK, already has equalised excise rates on petrol and diesel. A number of countries, notably France and Belgium, have also moved to equalise the excise rate on petrol and diesel. The excise on Diesel in Ireland is currently 22% less than on petrol and if implemented it is likely it would be done over a five year period and would mean an additional €337 million in revenue for the state.

2)    A number of Benefit-in-kind options are being considered to incentivise Electric cars. BIK for cars provided by employers in Ireland is currently based on engine size and kilometres driver and ranges from 6% to 30% of the value of the car. Evs receive favourable BIK treatment in a number of countries such as the UK. France, and Germany. The most significant incentive available is 0% BIK rates on vehicles with zero emissions.

3)    Currently VRT relief up to a max of €5,000 is allowed on the purchase of electric cars, this ceiling may be removed allowing for greater relief on more expensive cars.

4)    VRT rates on Light commercial vehicles may be based on CO2 emissions to encourage the buying of greener vehicles.

 

Geraldine Herbert

3rd August, 2017

Author: Geraldine Herbert

Contributing Editor and Motoring Columnist for the Sunday Independent and editor of wheelsforwomen. Geraldine is also a regular contributor to Good Housekeeping (UK) and to RTÉ Radio One, Newstalk, TodayFM and BBC Radio. You can follow Geraldine on Twitter at @GerHerbert1

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