Cabinet is scrutinizing car taxes

State Secretary Vijlbrief of Finance will critically examine the vehicle tax system. He said this last night during the closing debate on the Tax Plan for 2021. He will be talking about this with the automotive industry. However, the planned increase in bpm for the coming year is not over.

During the debate, Member of Parliament Pieter Omtzigt of the CDA Vijlbrief felt pretty tough about the current car taxes, especially about the current system surrounding the bpm. The focus of the discussion is ‘autonomous greening’ on the basis of which the bpm brackets and rates are tightened annually. For 2021, this tightening will be 4.2 percent. Vijlbrief says that he finds the current system ‘complicated’ and that he would like to give direction to its restructuring. He has promised to discuss this with the automotive industry, including the RAI Vereniging and Bovag interest groups. He must report the results to the House in two months’ time. Ultimately, this should result in ‘building blocks’ for a new car letter. That is what the cabinet that will take office next year is about.

Vijlbrief therefore did not meet the wish of the Bovag and the RAI Association to set the autonomous greening for the coming year to 0 percent. Despite his reservations about the current car tax system, he says he still supports the increase. The State Secretary also disagreed with the claim that 1.5 billion euros has been raised ‘too much’ in bpm in recent years. He does say he will look at the effect of the current bpm on the purchase prices of cars for low and middle incomes. This in response to a motion by Member of Parliament Helma Lodders (VVD).

A response from the RAI Association to Vijlbrief’s promise shows a twofold sentiment: the interest group does not agree with the bpm increase, but is pleased that the realization is emerging in politics that the current car taxes must be overhauled. That will ultimately be in the hands of the next government, but Vijlbrief will therefore provide a first step in the short term.

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