ACEA: ‘Belgium has highest taxes per vehicle in EU’
According to ACEA’s Tax Guide 2021, a 350+ pages report just published, motor vehicles account for €398,4 billion in tax revenues in Europe’s key markets, a 3% rise compared to last year. Belgium takes the cake with the highest taxes per vehicle of them all, €3,187 annually, totaling €21,4 billion in tax revenues.
The European Automobile Manufacturers’ Association (ACEA) points out that car taxes in the member states represent “close to two and a half times the total budget of the European Union. The national income ranges from €99.9 billion for Germany, which has the EU’s biggest vehicle fleet, to €6.2 billion for Ireland.”
Belgium leading the pack
In average annual tax revenue per motor vehicle, Belgium leads the pack as said, followed by Austria (€2 678), Finland (€2 523), Ireland (€2 438) and Denmark (€2 251). The Netherlands comes in sixth at €2 158, just before Germany (€1 963), France (€1 911) and Italy (€1 727). Spain squeezes out of the car least of all: €1 068 per year.
The total tax income on motor vehicles is composed of VAT on the purchase, servicing, and repairs of the car, sales and registration taxes, annual ownership taxes, excises on fuel and lubricants, insurance taxes, and eventually others like a tax for issuing the registration plate (30€ in Belgium) or driving license fees.
Excise on fuel largest chunk
From the €21,4 billion Belgium is raking in, €8 billion comes from VAT on the purchase and servicing, €0,5 billion on sales and registration, €1,7 billion on annual ownership, and the largest chunk from excises on fuel: €8,7 billion.
Belgium isn’t the most greedy, though, when it comes to excises on fuel with 0,600 euros per liter for diesel and gasoline. Compared to the Netherlands with 0,831 euros for gasoline and 0,522 for diesel, being at the top. In France, for instance, this is 0,683 euros per liter for gasoline and 0,594 for diesel. Germany keeps it at 0,655 for gasoline, 0,470 for diesel.
The lowest excises on fuel can be found in Hungary: 0,345 euros for gasoline and 0,317 for diesel, but that country has the highest taxes on acquiring the vehicle to compensate (27%).
Funding charging infrastructure
“Vehicle, road, and fuel taxes generate huge amounts of government revenue every year in the EU,” ACEA Director-General Eric-Mark Huitema states in a press release.
“This income should help fund the charging and refueling infrastructure that is now urgently needed to cater for the rapidly growing market uptake of alternatively-powered vehicles.” Over the first quarter of this year, almost 14% of all new cars sold in the EU were electrically chargeable.