Flanders: ‘fiscal deduction only for electric company cars’
Flemish Minister of the Environment and Mobility, Zuhal Demir (N-VA), is asking her federal colleague, Marie-Christine Marghem (MR), to take action for a faster switch to electric company cars. The action is necessary if Flanders wants to meet its climate goals – a 35% reduction of CO2 emissions – by 2030.
Earlier, the news spread that Federal Informant, Paul Magnette (PS), only wants to stimulate electric lease cars fiscally. Now it seems that the Flemish government has similar plans so that the fiscal deductibility will only apply to lease cars that don’t produce any CO2 emissions.
In the plans Magnette announced, he only wants a fiscal deduction for pure electric cars. The deduction for other cars will be reduced systematically in the coming years. From 2023 onward, leasing costs will be only deductible for vehicles that emit no CO2 at all. Only electric cars comply with these requirements. The proposal he submitted immediately provoked a lot of reactions.
Minister Demir says being worried “because the federal climate and energy plan hardly contains measures to meet the targets for CO2 emissions”. That is why she’s appealing to her federal colleague Marghem.
Demir wants Marghem to adapt the fiscal rules for company cars “to make the companies’ fleets greener and emission-free as soon as possible”. Existing contracts, however, should be respected. “But the offer of electric models should be sufficient so that employees should be able to use their vehicle as a family car.
According to a study of the Flemish Administration, the plans of the previous legislature didn’t contain many concrete actions to meet the set climate goals by 2030. With the new climate plans, Demir wants to put more effort into renewable energy with wind farms and solar panels.
‘Realistic and affordable’
Zuhal Demir has also asked her federal colleague more measures in other policy domains that could contribute to lowering emissions, like in agriculture, transport, industry, construction, and recycling.
Political party N-VA, however, will not accept that the ‘green’ measures will lead to higher taxes. “Things have to be feasible, realistic, and affordable. Families and SMEs may not end up in a crush”, Demir emphasizes.
Demir wants Marghem to introduce a larger subsidy for energy-saving investments in companies. And she refers to The Netherlands, where support can go up to 15 to 55%. Today, in Flanders, it is only 13,5%.
She also wants a lower VAT rate for reconstruction after the demolition of a house. Today, the measure is valid in 13 regional capitals, but in the future, it should be possible in the whole of Flanders. And, last but not least, Demir plans to accelerate the phasing out of oil fuel central heating boilers.