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In Europe, 32 billion euros is awarded in subsidies for company cars. This has emerged from a new study by the green pressure group Transport & Environment (T&E). Almost the full amount is allocated to cars with a petrol or diesel combustion engine. In Belgium, the cost, through tax benefits and exemptions, is estimated at 2.3 billion euros.
According to the NGO, only eight countries (Germany, France, the United Kingdom, the Netherlands, Belgium, Spain, Italy and Poland) dominate the commercial vehicle market in Europe. T&E calculated that Belgium subsidizes every “company car” for an amount of 6,542 euros. However, the NGO sees the problem of these subsidies mainly in the impact on the climate. The study shows that last year 96 percent of the registrations of new company cars were cars that run on petrol or diesel. This is striking, given that the coalition agreement states that all new company cars must be electric by 2026.
“The ten largest leasing companies in Europe account for 8 percent of CO2 emissions from vehicles in Europe. Company cars travel more than twice as many kilometers than private cars, ”says T&E. The NGO emphasizes that companies nevertheless have every interest in greening their vehicle fleet. “An internal analysis has shown that the total cost of owning an electric car is 9 percent lower than that of a diesel car.”
Currently, six out of ten new cars sold in Europe are commercial vehicles. As a result, the electrification of this segment offers a golden opportunity for governments to meet their national climate goals, according to T&E. She calls on governments to revise company car taxation towards cleaner cars.
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