VRT relief for electric vehicles has been extended for two years in Budget 2027, writes Brian Byrne. Finance Minister Simon Harris announced that the relief will continue until 31 December 2028, while VRT on more polluting cars (A3 to F) will increase by one per cent to encourage low-emission vehicle purchases.
Additionally, the temporary fuel excise reduction is extended until 28 February 2027, with gradual restoration by 30 June 2027.
Recent analysis of customer searches by Done Deal Cars indicates a strong shift in consumer preferences, with electric vehicle searches rising by 75% and hybrid searches by 17% between September 2025 and September 2026. Diesel searches fell by 23% and petrol searches increased by 3% in the same period.
