Belgian federal government gives hybrids more breathing space (Update)

The Belgian federal government gave hybrid cars more breathing space in its Easter agreement. The authorities now think that a battery electric car is not yet the right solution for everyone and are providing more room to hybrids. Organisations that promote EVs or environmental associations see the new rules as a serious step back.

The aim is for more than 300,000 professional car users currently driving an ICE car over five years old to switch to a new and more frugal alternative. Despite the tax incentives for fully electric vehicles, they don’t seem tempted to go electric all the way.

There will now be a transition period until the end of 2027, with 75% deductibility for ‘green hybrids’. After that, this will evolve to 0% in 2030.

The greener, the better

The new rules will only apply to the greenest hybrids, those emitting less than 75 g/km CO2. The list of those hybrids isn’t available yet because the measuring method for CO2 emissions will differ by the end of the year. All manufacturers have to re-homologate their cars according to the new measuring method.

If their CO2 emissions are lower than 40 g/km, they will have the same tax advantages as purely electric cars. However, as with pure EVs, the maximum tax deduction will drop to 95% in 2027.

The other ‘green’ hybrids will have a tax deductibility rate of 75%, and this rate will not disappear in 2028 but will only gradually be lowered: 65% in 2028 and 57.5% in 2029. The initial deductibility percentage applies to the whole period of use. The new rules come into effect on January 1st, 2026, when the new measuring method for CO2 emissions is applied.

Fuel cost

Until the end of 2027, 50% of the fuel cost (gasoline or diesel) for hybrids remains deductible. This advantage disappears in 2028. To promote electric driving, the cost of electric charging for hybrids remains 100% deductible, like that of BEVs.

Most people who drive these older cars mentioned before are small companies or independent workers. They can be interested in buying one of the newly categorized reen hybrids instead of buying a fully electric vehicle.

Larger companies adapted their fleet policy to the new (fully electric) rules a while ago and will probably not change it again. Running a consistent fleet policy is a long-term story, and the goal remains to go fully electric.

Critical voices

EV Belgium, the federation promoting emission-free driving, thinks this decision is the wrong signal. “This fiscal regulation doesn’t consider that plug-in hybrids only reach their emission target if charged as often as possible. Moreover, the government says the new measures are meant for people who don’t have charging possibilities, which undermines the logic of the decision.”

According to calculations of the federation, the new rules will lead ot an increase of about 95,000 PHEVs and a decrease of some 100,000 zero emission vehicles, leading to an extra emission of 87,000 tons of CO2 every year. “This new ruling of the federal government will also complicate the Flemish targets for CO2 reduction.”

Also, the Bond Beter Leefmilieu (BBL), the association for a better environment, finds the decision “irresponsible, thoughtless, and unnecessary. “We know from many reports that PHEVs emit on average 3.5 times more than officially registered,” says Naomi Cambien from the BBL.

“The new rules are bad for air quality and people’s health. Climate goals will be even more challenging to achieve, and the adaptation will also have serious consequences for the federal budget. The direct impact is estimated to be €91 million. Still, there is also the risk that the €150 million from the EU relaunch fund won’t be paid because the electrification of the professional car sector in Belgium is retarded. And we haven’t mentioned possible climate fines for extra emissions yet,” Cambien concludes.