VRT receipts decrease by €11 million in 2025

Vehicle Registration Tax (VRT) receipts last year fell by €11 million to €938 million, representing a one per cent decrease compared to €949 million in 2024, according to Revenue’s newly published 2025 annual report.

Revenue said this decline in receipts amid rising vehicle registration volumes reflects the continued shift toward lower-emission vehicles, which attract reduced VRT rates.

For the first time, 2025 saw electric and hybrid vehicles represent the majority (57 per cent) of all new car registrations, up from 46 per cent in 2024.

This shift has accelerated the decline in the weighted average VRT rate, which fell to 14 per cent in 2025, the lowest level on record and 27 per cent below the 2019 rate of 18.6 per cent.

There has been considerable change in the vehicle market in recent years. The UK’s departure from the EU, the Covid-19 pandemic, the move towards electric vehicles, and fuel price changes have all impacted on registrations and receipts.

In 2025, the import landscape continued to diversify, with used car imports from Japan exceeding those from the UK for the first time, reflecting the ongoing effects of Brexit-related import costs and supply chain adjustments.

UK used car imports increased by nine per cent to 36,227 vehicles while Japanese used car imports continued their strong growth to 36,604 vehicles (up 24 per cent from 2024).

Meanwhile, the average Open Market Selling Price (OMSP) for a new Category ‘A’ internal combustion engine registration was €38,400 in 2025, an increase of six per cent on 2024, while the average OMSP for a new EV registration was €47,300, a seven per cent reduction on 2024.