By 2030, just 13 years from now, every third new registered car in the EU could be an electric vehicle and plug-in hybrids could account for a 47% market share. So says the 2017 Fleet Europe Taxation Guide, which has been produced by Nexus Communication in conjunction with global accountancy firm, PwC.
The 11th edition of the report, which is again being sponsored by Opel/Vauxhall and Volkswagen Financial Services, says that such an increase will force Governments to re-evaluate the tax systems for this ‘greener’ class of vehicles to avoid losing vital revenue.
The growth forecast for EVs and plug-in hybrids has been made, says the Guide, under the assumption that current issues with battery capacity, insufficient installation of charging points and high prices for electric and plug-in hybrid cars will be solved.
However, it looks likely to only be a matter of time before Governments re-examine the tax benefits of electric and hybrid cars in the light of falling income from car taxation. In the meantime, fleet managers are advised to continue to evaluate the use electric and hybrid cars in order to reduce tax costs, which are often between 15% and 20% of the overall TCO, says the Guide.
Now in its 11th year, the Guide looks at the, in many cases, sweeping changes that have been made by Governments in 23 European countries in the taxation of company vehicles during the last 12 months. And a useful new section again includes an overview of the main changes that have been implemented in each country compared to 2016.
Take Belgium, for example, where the deemed benefit-in-kind from a fuel card provided by an employer will increase for payroll tax purposes. Meanwhile, the center of Antwerp has been turned into a low-emission zone (LEZ) which must not be entered by cars that are older than the Euro norm, while other cities like Brussels may follow suit.
In the Netherlands, car registration tax (BPM) for plug-in hybrid vehicles is now calculated according to a separate table was effective from January 1, 2017.
And for wage tax purposes, the benefit-in-kind of cars registered from January 1, 2017 onwards is now calculated on three categories: 4% for those with no CO2 emissions, 35% for cars that are 15 years and older and 22% for all other cars.
Meanwhile, in Germany, the tax free recharging of electric car batteries at the workplace look likely to result of a proliferation of such facilities, while there is every chance of an increase in CO2 emissions- based vehicle tax as a result of the implementation of the worldwide harmonized light duty test procedure (WLTP) by manufacturers.
Fleet Europe editor-in-chief, Steven Schoefs, commented: “Governments use car taxation for two different objectives: securing revenue, and working towards a cleaner, greener society. They do this by following two distinct fiscal paths: granting incentives for vehicles with alternative powertrains, and penalising those with more polluting powertrains.
“But car manufacturers keep lowering CO2 emissions and both the private and corporate sectors are choosing ‘greener’ vehicle options. Thus revenue streams are under threat, so Governments have to find new measures to keep money flowing in.
“Slowly but surely, car taxation will start promoting the new mobility paradigm. Car pooling and other shared mobility options will be favoured, in order to help us shift from car ownership to car usage.
“As a consequence, company car taxation will become even more complex, with even more local tax variations under the guidelines of a European tax umbrella. Corporate fleets will be taxed to move forward with smart alternative mobility schemes, and we will see a growing switch from Total Cost of Ownership to Total Cost of Mobility,” he said.
“Whether or not you and your company are already considering new mobility, this new edition of the Fleet Europe Taxation Guide is your comprehensive tool to decide on the right taxation choices for your corporate fleet across Europe,” he added.
The 23 countries covered in the printed version of the 2017 Taxation Guide are: Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Luxembourg, Netherlands, Norway, Poland, Portugal, Romania, Russia, Spain, Sweden, Switzerland, Turkey and the United Kingdom.
The digital version expands this to 29, with those from the printed version plus the Baltic states of Estonia, Latvia, Lithuania and three Eastern European countries, Bulgaria Slovakia, Slovenia.
The Fleet Europe Taxation Guide 2017 can be ordered at a price of €95 (excluding VAT) for the printed version and €85 (excluding VAT) for the digital version. Digitals versions per country can be also ordered at a price of €45 (excluding VAT.) All are available through the Fleet Europe e-Shop at http://shop.nexuscommunication.be/
