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

Sunday Independent (Ireland) - - Sunday Business - 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.”

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

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