Federal Government agrees measures to make company cars greener

The Federal Government has reached agreement on measures that to make our daily journeys to and from work more environmentally friendly. Much attention is given to company cars that will have to be emissions neutral from 2026. The agreement came after a lengthy meeting that finally ended at around 1am. 

Under the agreement only emissions-free company cars (in the main electrically powered vehicles) will be able to be set off against tax from 2026. The aim of the measure is to in one sweep significantly reduce our country’s CO2 emissions. 

What’s in the agreement?

The agreement covers three main themes. Firstly, from 2026 only emissions-free vehicles will enjoy a favourable fiscal regime. Initially they will be 100% tax deductible. This will later be reduced to the level that currently applies to vehicles powered by petrol or diesel.  

From 2023 the tax deductibility of petrol and diesel vehicles will slowly be reduced. This is to set the switch over to emissions-neutral vehicle in motion. The definition of “emissions-free” is that a vehicle may not emit any CO2. In the first instance these will be cars that are entirely powered by electricity. However, in time these could be cars powered by hydrogen or some other technology. The new rules will only apply to cars. Other vehicles such as vans or vehicles used to transport freight are not included in the measures.

Secondly, it has been agreed to increase the number of charging points for electrically powered vehicles. Currently there are fewer charging points in the whole of Belgium than there are in the Dutch city of Amsterdam.

Thirdly, it has been decided to simplify the rules surrounding the so-called “transport budget”. This is a sum given to employers that would normally be entitled to a company car but opt not to take one. The budget can used to pay for public transport or another transport option. It offers flexibility and choice and encourages those that take it to use more environmentally friendly methods for their daily commute more often. More different modes of transport will be allowed to be used under the conditions of the mobility budget and the amount of time those interested in switching to it have to wait will be reduced. 

Top stories