What does Budget 2022 mean for the motorist?

Public Expenditure Minister Michael McGrath and Finance Minister Paschal Donohoe have presented the 2022 Budget. From fuel price increases to VRT, here’s everything motorists need to know…

There were no real surprises in the budget and the key takeout for motorists is that fuel prices will increase and some new car buyers will face higher prices on larger and more emitting models. Here’s our summary of what the changes mean for you…

1) VRT
Changes to the VRT tax scales mean that there will now be a +1% increase on cars emitting between 111 to 130g/km, +2% on those with emissions of 131 to 145g/km, and cars over 145g/km will face a 4% increase.

2) Fuel increase
The increase in carbon tax will add an extra  €1.28 to an average 60-litre tank of petrol and €1.48 to a tank of diesel.

3) Electric Cars
The €5,000 VRT rebate for EVs will be extended until 2023 and Benefit in Kind until 2025. In terms of BIK from 2023 the original market value of an EV will be reduced by €35,000 for 2023; €20,000 for 2024; and €10,000 for 2025.

4) Hydrogen
The  Accelerated capital allowance scheme is being extended to include hydrogen fuel vehicles and refuelling equipment.

13th October 2021
Geraldine Herbert

Author: Geraldine Herbert

Motoring Editor and 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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