According to a monitoring report of the Belgian governmental service for social security (RSZ), there were 572,416 company cars in Belgium, which can also be used privately by company employees. The number of cars still increases (+10.9 % compared to 2022), as does the number of companies offering a company car (+3.6%).
“Despite all the discussions, a company car remains an excellent tool to attract new employees,” says Olivier Vanneste, partner at KPMG consultants, in De Tijd. KPMG analysed the RSZ report and remarked that not only is the number of cars increasing, but also the number of companies offering this option in their salary package.
“Even SMEs that ignored it until now feel obliged to follow because of the competition on the labor market,” Vanneste adds. “We see people looking for a job refuse it if there’s no company car offered. That’s how important this benefit is considered.”
Mobility budget also in the lift
One would think that the more recent mobility budget is not so popular, considering the continuous increase in company cars, but that’s not the case. 18,386 employees signed up for a mobility budget last year, almost double the number the year before.
The problem for a real breakthrough of the formula is the number of companies offering it. That’s still incredibly low. “Hardly 2.5% of the employers that can offer a mobility budget do so,” says Kathleen Veugelen, mobility budget expert at KPMG, also in De Tijd. “Companies are afraid of the andminstration overload.”
This will change next year because the federal Arizona government has decided that companies offering company cars must also provide a mobility budget. Veugelen expects this decision to have a significant impact. “A mobility budget can be very interesting for people who don’t really need a company car or choose a cheaper one.” Where possible, KPMG sees 15% of the employees choosing a mobility budget.
The system is becoming increasingly popular in companies with many junior employees living in the city, some of whom don’t even have a driver’s license.
Electrification is on the way
At the beginning of 2022, over half of the newly registered company cars still had a combustion engine (ICE). At the end of last year, that share had dropped to less than 10%. More than six of ten company cars in Belgium are already pure electric, and the remaining 30% are hybrids.
Vanneste thinks that the fact that hybrid cars are being considered ‘green’ and fiscally advantageous for a longer period again in Belgium won’t have a really big impact on registrations. “A 100% electric car is better for the company’s image.”
