VZR: kilometer allowance of €0.35 no more than realistic

In January 2023, the tax-free mileage allowance that employers are allowed to provide was increased for the first time in 17 years. As of January 1 this year, employers may reimburse a maximum of €0.23 per kilometer without employees having to pay tax on it. That is also far too little, reports the Association of Business Drivers (VZR).

According to VZR, a kilometer allowance of €0.35 for those who use their private car for business kilometers would be no more than realistic. According to VZR, the current tax-free kilometer allowance of €0.23 hardly covers the fixed and variable costs associated with car ownership and driving. VZR believes that employers should also contribute to the costs of car insurance, maintenance and depreciation in the mileage allowance to be paid. VZR also works in its calculations with what it calls an availability fee, an amount per kilometer for making the private car available. This surcharge should amount to 50 percent of the fixed part of the kilometer cost.

Together with mobility experts, VZR has set a standard based on the costs of using the most used cars in three price segments.

Nearly 90 percent of employees receive too little

According to a poll Among VZR members and visitors to the VZR website, no fewer than 87 percent of business drivers receive a mileage allowance that does not cover the costs. 27 percent of respondents are reimbursed less than the legal maximum of €0.23 per kilometer. 45 percent of respondents say they do receive €0.23 per kilometer. There is also a portion that receives a mileage allowance of €0.35 or more (15 percent).