Vehicle registration tax relief on electric and hybrid vehicles has been extended as part of the climate change measures in Budget 2017.
VRT relief on electric vehicles has been extended for five years, while hybrid vehicles will get relief for an extra two years under the Minister for Finance’s measures.
Meanwhile natural gas used as a vehicle fuel will also be taxed at the EU minimum rate of excise for the next eight years, as an attempt at reducing the dependence of larger vehicles on diesel.
Michael Noonan said climate change was the “global challenge of our generation” and work was underway to transition Ireland to a low carbon economy by 2050.
Other measures in Budget 2017 will see a carbon tax relief introduced for solid fuels that include a biomass element, as well as full relief on fuels for combined heat and power plants.
Mr Noonan said these types of plants offered the most efficient use of energy in electricity generation and the relief announced today would benefit a number of plants around the country.
