In the four largest EU countries, subsidies for petrol and diesel company cars cost taxpayers €42 billion every year, according to a new study by the environmental group Transport & Environment (T&E), published on Monday 21 October.
The study calculates the effects of the tax benefits traditionally granted to company cars: benefits in kind, depreciation, value added tax (VAT) deductions and fuel cards. These subsidies are not available to private car owners. Company cars account for 60% of all new registrations in Europe.
Italy, followed by Germany, France and Poland, are the countries that subsidise company cars the most, to the tune of 16, 13.7, 6.4 and €6.1 billion a year respectively. The largest subsidies are granted under benefit-in-kind schemes, which continue to encourage petrol and diesel vehicles.
Out of a total of €42 billion, €15 billion is being used to subsidise SUVs. The study reveals that, compared with a private buyer, SUV company car drivers pay up to €8,900 less a year in taxes to drive an SUV.
T&E is calling on the new European Commission to act now and introduce in 2025 a regulation on greening corporate fleets, setting binding 2030 electrification targets for large corporate fleets and leasing agencies. This will stimulate demand for electric vehicles.
Read the study: https://aeur.eu/f/dz0 (Original version in French by Anne Damiani)