Tobacco
To support public health policy and to reduce smoking levels, excise duty on a packet of 20 cigarettes increased by 50c, with a pro-rata increase on other tobacco products.
e-Cigarettes (e-Liquid excise)
The Minister for Finance, Paschal Donohoe, has signed the commencement order to operationalise the E-liquid Products Tax (EPT), as legislated for in Chapter 1 of Part 2 of the Finance Act 2024. The new excise duty will apply from 1 November 2025. The introduction of EPT underlines Ireland’s ongoing commitment to safeguarding public health and tackling the increasing consumption of vapes and related products, particularly among young people.
Under the new law, EPT will apply to both nicotine-containing and non-nicotine-containing e-liquid products at a single flat rate of 50 cent per millilitre of e-liquid. The taxing point for EPT will be the first supply of e-liquid product in the State and the tax will follow Revenue’s standard model of self-assessment. Suppliers of e-liquid product will be required to register with Revenue in advance of making a first supply of e-liquid products in the State. Suppliers will also be liable to account for and pay the tax.
ESG measures
The €5,000 VRT relief for electric vehicles has been extended for a further one year. Benefit-in-Kind regime for company cars has been extended, on a tapered basis, the universal relief on the Original Market Value of a vehicle which was first introduced as a temporary measure in 2023. This relief will remain at €10,000 in 2026. It will reduce to €5,000 in 2027 and €2,500 in 2028, being abolished from 2029. Creating a new vehicle category for zero emission cars only, where the lowest BIK rates will apply .
Micro-generation of electricity: Income Tax disregard of €400 for income received by households who sell electricity from micro-generation back to the grid extended for a further three years.
There has been an extension to the Accelerated Capital Allowance schemes for energy efficient equipment, gas vehicles, and refueling equipment for a further five years until 31st December 2030 to encourage capital investment to help deliver a reduction in emissions
There has also been an extension of the Accelerated Capital Allowance scheme for slurry storage facilities for four more years to continue to help farmers meet emissions targets
Infrastructure, Climate and Nature Fund (ICNF)
€2 billion from the Infrastructure, Climate and Nature Fund is being allocated to progress MetroLink. By the end of next year the Future Ireland Fund and the Infrastructure, Climate and Nature Fund are predicted to have built up to around €24 billion.
€3.5 billion has been allocated to ESB and EirGrid to strengthen energy security and accelerate Ireland's transition to renewable energy.
€1.1 billion allocated to Department of Climate, Energy and the Environment in 2026 to be used for measures such as supporting Just Transition, energy upgrade schemes, SEAI Residential/Community retrofitting schemes, and de-carbonising rural bus routes.