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Image header Agence Europe
Europe Daily Bulletin No. 11838
SECTORAL POLICIES / Industry

ACEA calls for tax neutrality in new vehicle approval system

In a press release published on Thursday 27 July, the European Automobile Manufacturers' Association (ACEA) warned about the possible impact of the entry into force of the new cycle of the Worldwide harmonised Light vehicles Test Procedure (WLTP) on European consumers’ wallets if the member states do not review their respective tax regimes for automobiles.

The ACEA pointed out that 19 member states had followed the lines set out by France, Germany and the United Kingdom and set up tax regime for vehicles that took into account CO2 emissions on the basis of the measures undertaken as part of the New European Drive Cycle (NEDC), which, contrary to what its title suggests, dates back to 1970.

Problem: the WLTP will be much more accurate and comprehensive with regard to the measures taken and will also take into account the impact of the options affecting fuel consumption and emissions from each new model. This tougher system will see an increase in the CO2 emissions levels measured and will also, incidentally, exclude a whole range of vehicles from the tax exemption regime set up in certain member states.

According to one expert, a vehicle that emits 95g/km under the NEDC is expected, according to the projections, to have a rate of115g/km under the new approval system. On this basis, a customer who benefits from a tax exemption of €400 for a vehicle emitting100g/km would lose their tax break.

Our same expert explained to us that ACEA is also concerned by the possible confusion created for consumers with regard to these emission results, given that the emissions displayed will be according to the results of the two NEDC and WLTP cycles until 1 January 2019. The ACEA is calling for clarification and for the WLTP results for consumers not to be introduced until 2019.

It should also be recalled that the new cycle will apply to all new vehicles or new models introduced onto the European market for the first time as from 1 September 2017 (see EUROPE 11573). All new vehicles will be affected by the new test procedures in September 2018.  (Original version in French by Pascal Hansens)

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