Ireland’s Budget 2026: Stability for a Growing EV Market
Ireland’s Budget 2026, announced by Minister Paschal Donohoe, offers reassurance for the country’s growing electric vehicle sector. It provides valuable continuity for EV drivers, fleet operators and infrastructure providers. The message is clear: government support for electrification remains consistent, even as Ireland moves toward a self-sustaining market.
The €5,000 Vehicle Registration Tax (VRT) relief for new electric cars will remain in place until the end of 2026, helping to maintain confidence among consumers and stability for manufacturers and dealers as adoption continues to rise.
For businesses, the Benefit-in-Kind (BIK) scheme has been refined to give a clear transition path. The current €10,000 relief stays in place through 2026, before tapering to €5,000 in 2027, €2,500 in 2028, and ending in 2029. A new zero-emission BIK band introduces lower tax rates for fully electric company cars, reinforcing Ireland’s focus on pure EV fleets and clarifying the distinction from hybrids.
Electricity will continue to benefit from the reduced 9 % VAT rate until 2030, keeping charging more affordable across home and public networks. The Accelerated Capital Allowances scheme for energy-efficient equipment and refuelling infrastructure has also been extended to 2030, a positive signal for investors and charge-point operators expanding Ireland’s EV network.
An increase in carbon tax on petrol and diesel further underlines Ireland’s commitment to decarbonisation and enhances the long-term running-cost advantage of EVs.
While some may have expected new funding, Budget 2026 is best viewed as a stabilising measure. Consistency gives the industry confidence to plan, invest and grow without disruption.
At EZO, we welcome this pragmatic approach. A stable policy environment supports infrastructure expansion, enables fleet transition, and helps Ireland continue its journey toward a connected, zero-emission transport network.
