Business Irish

Wednesday 26 June 2019

Tesla company cars take a hit in Budget as electric benefit-in-kind perk capped

Tesla boss Elon Musk — executives who have one of his electric cars face a financial hit due to a new Budget measure
Tesla boss Elon Musk — executives who have one of his electric cars face a financial hit due to a new Budget measure

Samantha McCaughren, Business Editor

A new measure in last week's Budget will hit executives who have a Tesla or any expensive electric company car.

In the 2018 Budget, a 0pc benefit-in-kind (BIK) rate was introduced for electric vehicles for one year. It was announced in Budget 2019 last week that an extension of the 0pc BIK rate for electric vehicles for three years would be capped at €50,000 on the original market value.

Company cars broadly fall into two categories, executive cars and cars used by employees clocking up large mileage, with executive cars typically costing more than €50,000. The model S Tesla sells for over €80,000 and the model X sells for over €110,000.

Figures from the Society of the Irish Motor Industry show that 1,175 electric cars were sold in the first nine months of this year, up from 581 last year. Some 116 were Teslas, produced by the company founded by Elon Musk, compared with 39 last year. Two electric Jaguars have also been sold so far this year, compared to zero last year.

Councillor Ciarán Cuffe, the Green Party's Transport spokesman, said: "At a time when we wish to decarbonise the Irish economy this is a step in the wrong direction. The share of electric vehicle purchases achieved 52pc in Norway in 2017, yet here the figure was less than 0.5pc."

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