Carbon tax
- The carbon tax on kerosene and natural gas will be reduced from €63.50 to €48.50 per tonne of CO₂ and will remain at this rate until 2030. (The carbon tax rate on kerosene and natural gas was scheduled to increase to €78.50 per tonne by 1 May 2027.)
- Increases in carbon tax on petrol, diesel and other fuels will be deferred until 1 May 2027. A further increase will take place on 13 October 2027.
Vehicle Registration Tax (VRT)
- The €5,000 VRT relief for electric vehicles is extended until 31 December 2028.
- From 1 January 2027, there will be a 1% increase in VRT rates for cars in bands 3 to 20 with higher emissions. This will apply to cars with CO₂ emissions of more than 80g/km.
Road Transporters Support Scheme
- The Road Transporters Support Scheme (RTSS) is being extended by 2 months in 2026.
Vehicle Adaptation Scheme
- A new Vehicle Adaptation Scheme (VAS) will be launched to help people with mobility needs to access adapted vehicles. The new scheme will be a standalone support. It will not replace the existing Disabled Drivers and Disabled Passengers Scheme operated by the Department of Finance.
Taxsaver Commuter Ticket Scheme
- The Taxsaver Commuter Ticket Scheme will be reviewed to take into account the changes in working patterns for commuters since the scheme was initiated.
Public transport and roads
The Department of Transport has allocated funding for public transport and roads, including:
- DART, BusConnects and the Cork Area Commuter Rail programmes
- Road projects such as the Adare Bypass, the Galway Ring Road and the M28 Cork to Ringaskiddy
- The Dublin Metrolink development
- Rural transport links and services expansion
- School Transport Scheme for over 180,000 students
