Budget 2024 - climate change and other tax measures

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Carbon Tax

The rate per tonne of carbon dioxide emitted for petrol and diesel will increase from €48.50 to €56.00 from 11 October as per the trajectory set out in the Finance Act 2020.  This increase will be applied to auto diesel and petrol with effect from 11 October 2023 and to all other fuels with effect from 1 May 2024.

VRT Relief for Battery Electric Vehicles

The VRT relief for battery electric vehicles, which was due to end on 31 December 2023, is being extended by two years to 31 December 2025.

Increase Threshold for Donations of Heritage Items

This tax relief is available to taxpayers who donate heritage items to Irish national collections. A credit equal to 80% of the market value of the item donated can be set against donors’ liabilities for income tax, corporation tax, capital gains tax or gift and inheritance tax.  Currently, the aggregate value of items that can be donated under the scheme in any one year cannot exceed €6 million, this limit is to be increased to €8 million.

Defective Concrete Products Levy

This levy is being amended so that it will no longer apply to the pouring concrete used in the manufacture of precast concrete products.  A refund scheme is also being put in place to allow those who paid the levy on such concrete between 1 September 2023 and 31 December 2023 to reclaim it.

Revenue Compliance 

Revenue will conduct a range of targeted compliance management activities in 2024. It is expected that additional Exchequer receipts will arise from increased taxpayer compliance in the areas of eCommerce, payroll and expenses reporting and the cash/shadow economy.

Enhanced Employers’ Reporting

A new Enhanced Reporting Requirements (ERR) process is being introduced by Revenue for 2024 and later years to capture details of some non-taxable payments made to employees and directors.

Simplification – business taxes

Revenue will, in the coming weeks, establish a dedicated Tax Administration Liaison Committee (TALC) subgroup focused on identifying any opportunities to simplify and modernise the administration of business supports.

Revenue will also shortly launch a Public Consultation on how we can use digital advances to modernise Ireland’s VAT Invoicing and Reporting System.

In addition, the Department of Finance will launch a public consultation on share-based remuneration recognising the increasing importance that business places on share-based remuneration in rewarding and retaining employees.

 Return to Budget 2024 Summary

Please contact Robert Lohan if you have any queries rlohan@dhkn.ie.

This newsletter is intended as a general guide to the subject matter and should not be used as a basis for decisions.  Whilst every effort has been made to ensure the accuracy of the content, no liability can be taken for any omissions or errors.  Professional taxation advice should always be taken prior to proceeding with any transaction giving rise to tax consequences.

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