Society of the Irish Motor Industry Reaction to Budget 2027

"SIMI welcomes the extension of the Battery Electric Vehicle (BEV) VRT relief for two years as announced by Minister Simon Harris in his Budget speech. This was something SIMI had called for, underlining the importance of incentives in helping motorists to make the switch to a BEV. We await the announcement on the status of SEAI purchase grants, which are of similar importance to motorists looking to move to an EV. However the VRT increase of 1% for Bands 3 to 20 will only add to the expense of a car for the majority of new car buyers for whom an Electric Vehicle is not the correct choice for them for logistical or cost reasons at present. This is an unnecessary measure particularly in light of the current cost of living pressures and at a time when the new car market needs stability, not additional price increases that impacts affordability."

• Vehicle Registration Tax (VRT) Relief for Electric Vehicles The Vehicle Registration Tax (VRT) relief for electric vehicles (EVs), which was due to end on 31 December 2026, is being extended for two years to end 2028.
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• VRT on Category A vehicles bands 3-20 From 1 January 2027, the Category A Vehicle Registration Tax percentage rates, used to calculate the CO2 component of the charge, are being increased. The percentage rates applicable to bands 3 to 20 inclusive (cars with CO2 emissions of more than 80g/km and upwards) are being increased by 1 per cent. The rates applicable to bands 1 and 2 will remain unchanged.