Following a reduction for low-emission cars, 80% of people in Flanders are now paying €160 less on average in taxes for registering their car.
The European Commission introduced a more accurate method for calculating cars’ C02 emissions some years back that resulted in most cars being determined to emit more than previously thought, De Tijd reports.
In response, the Flemish government implemented a tax reform to ease the burden on car owners, reducing two key annual taxes, including the road use tax (BIV).
As a result of these reforms, 80% of people in Flanders paid less BIV in 2021 than in previous years.
Small cars earned cheaper tax rates
People who registered a Volvo XC40 paid €243 less than in 2019. The VAT on an Opel Corsa became €46 cheaper in two years. For the average owner, the amount dropped by €159.
“It shows that more and more people are buying a greener car and are rewarded with lower taxes,” said Flemish Minister of Finance and Budget Matthias Diependaele (N-VA).
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People with the most polluting cars (11%) as determined by the size and type of their engines still saw a rise in their taxes to an average of €361.
For 9% of car owners, their taxes didn’t change at all, and the overall tax revenue generated from the BIV decreased by around €13 million between 2019 and 2020.
Diependaele conceded that an increase in the number of electric cars (which are fully exempt from the BIV) will further decrease tax revenue and “the next government will have to look at how to deal with this.”