{"id":23860,"date":"2024-07-24T14:08:51","date_gmt":"2024-07-24T13:08:51","guid":{"rendered":"http:\/\/www.wheelsforwomen.ie\/?p=23860"},"modified":"2024-07-24T14:16:16","modified_gmt":"2024-07-24T13:16:16","slug":"what-may-be-ahead-for-motorists-in-budget-2025","status":"publish","type":"post","link":"https:\/\/www.wheelsforwomen.ie\/index.php\/what-may-be-ahead-for-motorists-in-budget-2025\/","title":{"rendered":"What May be Ahead for Motorists in Budget 2025?"},"content":{"rendered":"

\"\"<\/a>A new tax strategy paper published this week on Energy and Vehicle Taxation outlines what may be included in Budget 2025 writes Geraldine Herbert<\/strong><\/em><\/p>\n

1. Phasing Out the Diesel Excise Gap<\/strong><\/h4>\n

The Diesel Excise Gap refers to the lower tax rate on diesel compared to petrol in Ireland. Various bodies, including the Climate Change Advisory Council and the European Commission, have advocated for equalizing these rates due to environmental and public health concerns. The 2024 Climate Action Plan includes commitments to regularly review and reform environmental tax measures, potentially leading to annual increases in diesel excise rates. Full equalization could raise the cost of a 60-litre diesel tank by about \u20ac8.56.<\/p>\n

2. Phasing Out the Diesel Rebate Scheme (DRS)<\/strong><\/h4>\n

There have been multiple calls from institutions like the ESRI and the EU Commission to phase out the DRS, which provides financial relief to heavy goods vehicles using diesel. While industry representatives argue to maintain the scheme until viable diesel alternatives are available, the government may consider options like raising the price floor or lowering the rebate rate as steps toward phasing it out.<\/p>\n

3. Weight-Based Vehicle Tax<\/strong><\/h4>\n

With the rise in sales of larger, heavier vehicles, there are discussions around implementing a weight-based tax for passenger cars. Countries like Norway and France already have such taxes. This move aims to address the higher fuel consumption, increased road space, and safety concerns associated with heavier vehicles. The tax could initially target internal combustion engine vehicles, with potential future inclusion of electric vehicles (EVs). France’s recent adjustment of its weight threshold for heavy vehicles serves as a model, applying progressive rates for vehicles over specific weight limits.<\/p>\n

\"\"<\/a><\/p>\n

It could operate as a surcharge in addition to the existing emissions-based calculation (such that the total VRT liability would be calculated as CO2 component + NOx surcharge + weight surcharge). As illustrated, no weight-based tax would apply to vehicles below a certain threshold, between the base threshold and an upper threshold a standard rate per kg would apply and beyond the upper threshold a surcharge rate could be applied.<\/p>\n

4. Future Vehicle Tax<\/strong><\/h4>\n

The shift to a predominantly electric vehicle (EV) fleet poses a revenue risk, with an estimated annual loss of \u20ac1.5 billion from taxes currently levied on internal combustion engine (ICE) vehicles. Medium-term strategies may include road user charges, congestion charges, and the previously mentioned weight-based taxes. To meet climate action targets by 2030, vehicle taxation on higher-emission vehicles may need to increase, incentivizing the purchase of greener vehicles.<\/p>\n

Possible Options<\/strong><\/h4>\n
    \n
  • Vehicle Registration Tax (VRT):<\/strong> A 1% increase in VRT rates for high-emission vehicles could raise \u20ac26 million based on 2023 data.<\/li>\n
  • VRT Relief for BEVs:<\/strong> The relief, set to expire in 2025, might be extended with adjusted thresholds to ensure cost-effectiveness.<\/li>\n
  • NOx Surcharge:<\/strong> Increasing the surcharge by \u20ac5 per mg\/km could generate an additional \u20ac15.5 million.<\/li>\n
  • Emissions-Based VRT for Commercial Vehicles:<\/strong> Introducing emissions-based criteria for light commercial vehicles, which are currently 96.17% diesel, to encourage the transition to electric options.<\/li>\n<\/ul>\n

    Geraldine Herbert<\/strong><\/p>\n

    24th July, 2024<\/strong><\/p>\n

     <\/p>\n

     <\/p>\n

     <\/p>\n","protected":false},"excerpt":{"rendered":"

    A new tax strategy paper published this week on Energy and Vehicle Taxation outlines what may be included in Budget 2025 writes Geraldine Herbert 1. Phasing Out the Diesel Excise Gap The Diesel Excise Gap refers to the lower tax rate on diesel compared to petrol in Ireland. Various bodies, including the Climate Change Advisory […]<\/p>\n","protected":false},"author":1,"featured_media":23049,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13,117,77],"tags":[4178,4889,4885,3804,4908,3597,2348,4907,135,4886,4893,4894,3154,4910,4913,4890,4892,4915,4895,4896,4673,3183,4887,729,883,4019,4900,608,4903,321,2101,4912,4098,382,4897,4891,4898,4914,4905,4901,4906,4902,4888,4909,4904,2866,4911,4899],"class_list":["post-23860","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-owning-a-car","category-latest","category-news","tag-bevs","tag-advisory-council","tag-budget-2025","tag-climate-action-plan","tag-climate-action-targets","tag-climate-change","tag-commercial-vehicles","tag-congestion-charges","tag-diesel","tag-diesel-excise","tag-diesel-rebate-scheme","tag-drs","tag-electric-vehicles","tag-emission-vehicles","tag-emissions-based-criteria","tag-environmental-concerns","tag-environmental-tax","tag-environmentally-friendly","tag-esri","tag-eu-commission","tag-european-commission","tag-evs","tag-excise-gap","tag-france","tag-fuel-consumption","tag-heavy-goods-vehicles","tag-heavy-vehicles","tag-ice","tag-internal-combustion-engine","tag-motorists","tag-norway","tag-nox-surcharge","tag-passenger-cars","tag-petrol","tag-price-floor","tag-public-health","tag-rebate-rate","tag-revenue-generation","tag-revenue-risk","tag-road-space","tag-road-user-charges","tag-safety-concerns","tag-tax-rate","tag-vehicle-registration-tax","tag-vehicle-taxes","tag-vrt","tag-vrt-relief","tag-weight-based-tax"],"yoast_head":"\nWhat May be Ahead for Motorists in Budget 2025? 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