France is scaling back EV subsidy and increasing CO2 tax

In France, there will be less and less subsidy for purchasing electric cars in the coming years. At the same time, the ‘fines’ for CO2 emissions are actually getting higher.

Not only in the Netherlands does the government use subsidies to speed up the sale of electric cars. The French who are in the market for a new electric car will receive a financial incentive of € 7,000 this year. That will be less and less in the coming years. In 2021 it will go to € 6,000 and in 2022 it will be € 5,000. In addition, the subsidy on plug-in hybrids will also decrease. That is now still at € 2,000 and that will be € 1,000 next year. That appears from plan presented at the beginning of this week by the French Minister of Finance.

While it could of course lead to another huge run on electric cars this year, it will be a little less favorable in the long run. At the same time, another change is on the way that should in a different way ensure that the average emissions of the French vehicle fleet decrease more quickly. Cars with a combustion engine are more likely to get out of hand. This year, a ‘penalty tax’ will be added to the purchase price of a car when the car emits an average of 138 g / km (WLTP) or more CO2. Next year, that limit will be reduced to 131 g / km and in 2022 to 122 g / km.

Per gram of CO2 above this limit, the extra tax on the car increases exponentially. A car with an average CO2 emission of 138 g / m will only get € 50 tax on top, at 200 g / km that is no less than € 12,500. The upper limit for this tax will be significantly shifted in the coming years: next year up to € 40,000 extra tax can be levied on the basis of exceeding the CO2 standard and € 50,000 in 2022.

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