Flanders delays introduction of road tax for new electric cars

The introduction of an annual road tax for new electric cars in Flanders, initially set to take effect on January 1st, 2025, has been postponed. This was confirmed by the cabinet of Flemish Finance Minister Ben Weyts (N-VA) to Het Laatste Nieuws. The delay is attributed to the ongoing development of a taxation formula and unresolved negotiations with other Belgian regions.

Currently, fully electric vehicles and hydrogen cars are exempt from the annual road tax and the registration tax (BIV) in Flanders. This tax exemption was intended to encourage the adoption of zero-emission vehicles. However, with the increasing number of electric cars on the road, the Flemish government faces a significant decline in tax revenue and a budgetary deficit.

Uncertainty over tax calculation

To counter this “erosion of income,” the new Flemish government ended the tax exemption for new electric car registrations. The annual road tax was supposed to take effect starting in 2025, but that deadline has now been pushed back.

A major roadblock is the ongoing negotiations on taxing leased electric vehicles. These represent a significant share but are addressed as corporate assets on a federal level, making it a key issue in talks with the different regions. “For a tax on these vehicles, we need an agreement with the Brussels and Walloon regions,” said a spokesperson for Minister Weyts. Talks are underway but have not yet produced a concrete result.

The method for calculating the new road tax also remains unclear. The Flemish government has yet to define the tax criteria. According to Minister Weyts’s cabinet, electric vehicles will still get some slack and be charged at lower rates than combustion-engined models. Still, the exact criteria (weight, power, and so on) remain to be determined.

No new deadline

Predictions are that the delay will last at least three months. However, the Flemish government has refrained from setting a new deadline. Minister Weyts’s cabinet has stated that it “does not want to commit to a specific date,” raising the possibility that the road tax may not be introduced until later in 2025 or beyond.

For now, anyone registering a new electric car on January 1st, 2025, will still not have to pay any road tax. So, customers purchasing battery-powered cars still enjoy some advantages after the Flemish incentive for zero-emission cars was dropped on November 23rd. But a certain hurry might be advisable, as it is unclear whether the order or delivery date will count for assigning the new taxes.