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No negatives in Budget 2018 for the Motor Industry, clarity to be sought on details of EV incentives

10 October 2017

SIMI welcomes the announcement of Budget 2018, as we campaigned for no negatives in this year’s Budget that would impact on both the Motorist and our Industry, which is already been negatively impacted by Brexit.  

The message carried by the Budget proposal for the introduction of a 0 per cent rate of Benefit in Kind (BIK) in 2018 and no BIK on Electricity used in the workplace for charging vehicles is welcomed and would have the potential to lift EV sales. We will need to await clarification as to how it is intended that this provision should operate in practice.  If it simply means that 0% BIK will apply for a period of only one year on a company supplied car, then it is likely to have virtually no positive impact, as the normal Company Car purchasing cycle is three years. If, however, it were to mean that cars bought during next year were to benefit from 0% BIK for a longer cycle than a single year, then it could have a bigger impact. 

SIMI had also been pressing for some progress in relation to free Tolls, parking and supports for recharging installation but these are not specifically mentioned. The Budget, however, also provides “funding of €17M, to fund the rollout of the Renewable Heat Initiative and schemes to incentivise the uptake of electric vehicles”.  There is no detail in relation to what is covered here but the inclusion of EV’s in this regard is again welcome.  What is intended in this reference “to incentivise the uptake of electric vehicles” will require further clarification and if it contains some of the above concessions sought by SIMI then that would be very welcome addition to the 0% BIK.