Motor industry reacts favourably to Budget 2023
The measures specific to motoring in Budget 2023 have been welcomed by the Society of the Irish Motor Industry (SIMI).
Commenting on the budget, SIMI director general Brian Cooke said: “SIMI is pleased that the government listened to the industry and did not increase VRT in Budget 2023. In addition, the extension of the EV car SEAI grant scheme for the first half of next year will bring more potential buyers into the electric vehicle project, although the signal that this grant will be reduced from July is a concern.
“We hope the government can re-consider this closer to the time, as any reduction could undermine sales in what is still the early stages of the EV project.
“SIMI also welcomes the announcement of the Temporary Business Energy Support Scheme for employers which we hope will mitigate against rising energy costs and help to protect employment.”
Budget 2023, announced this afternoon by Minister for Finance Paschal Donohoe, and Minister for Public Expenditure and Reform Michael McGrath, contains some other measures specific to motoring, such as extending the current excise reduction of 21 cent per litre in respect of petrol, 16 cent per litre in respect of diesel and 5.4 cent per litre in respect of marked gas oil (MGO).
In terms of carbon tax, the rate per tonne of carbon dioxide emitted for petrol and diesel will go up from €41 to €48.50 from October 12, as per the trajectory set out in the Finance Act 2020. This will mean that there will be an increase of just over two cent VAT inclusive per litre of petrol and diesel.
Recognising the sharp cost of living challenges currently being faced by society, the government is proposing to offset this carbon tax increase with a reduction to zero of the National Oil Reserves Agency (NORA) levy.
The NORA levy, which is collected at a rate of 2 cent per litre (VAT exclusive), will help offset the carbon tax increase, which means that the price at the pump will not go up as a result of taxes or levies.
Click here for more from the Department of Transport on Budget 2023.