Is there a BIK tax reduction for hybrids?
Filed under:
taxation
The question
Hi guys,
I’ve opted for a Toyota Corolla hybrid for my next company car. My question is, is there a reduction in BIK tax for hybrid electric cars in Ireland?
Asked by Niall Carson ·
Expert answer
Hi Niall,
I’m afraid not. Revenue only applies BIK relief to electric cars and flatly states that ‘hybrids do not count as electric vehicles.’ BIK is calculated on the value of the car and the annual mileage, not on the CO2 emissions of the car. That may change in the coming months, with the new FG-FF-Green coalition promising to review the motor taxation system, but for now, there’s no BIK benefit to driving a hybrid.
Answered by Neil Briscoe