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“a disguised tax”, what is the government planning?

How does this tax currently work?

This tax on CO2 exhaust emissions currently starts at 50 euros for a vehicle emitting more than 118 grams of CO2 per kilometer (like certain Renault Clio or Citroën C3). Since January 1, 2024, this tax can reach 60,000 euros for vehicles emitting more than 193 grams, such as sports cars or high-end SUVs from Alfa Romeo, BMW, Porsche or Ferrari.

On the contrary, an ecological bonus is paid to compensate for the higher prices of electric cars, up to 4,000 euros for a vehicle costing up to 47,000 euros, excluding Chinese vehicles.

What does the government want to do?

According to the newspaper “Le Monde”, Bercy plans to tighten the scale again (currently 118 grams of CO2 per kilometer) to lower it to 106 grams in 2026 then to 99 grams the following year. De facto, only electric vehicles would not be taxed, while hybrid vehicles, which emit more than the tax thresholds announced by the government, would still be.

What does the automotive industry think?

The president of the Automotive Platform Luc Chatel denounced this change in scale before senators on Wednesday, which would create a “disguised tax”. According to him, these new revenues would in fact betray the principle of “equalization”, between the penalty on polluting vehicles and the bonus on less polluting vehicles.

It would now be a question of taxing not “the 20% most polluters” but “Mr. and Mrs. Everybody”, launched the representative of the manufacturers and equipment manufacturers. The sector demands “stability, readability, simplicity” in these tax incentive measures, otherwise they will remain “incomprehensible” for buyers, according to Mr. Chatel.

Electrify the company car fleet

The government has not yet commented on measures to encourage companies to electrify their fleets, which represent half of new vehicle sales. Few of the largest companies are still meeting their obligation to purchase 10% of low-emission vehicles.

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