Belgium’s Council of Ministers has approved a bill creating a mobility budget, Social Affairs Minister Maggie De Block announced on Friday. Among other things, this will enable employees who have company vehicles to exchange them for more environment-friendly vehicles.
In March, the Chamber had approved a cash-for-car mechanism allowing workers to hand over their company cars for the equivalent in cash. At the same time, the social partners proposed an alternative system to which the Government agreed.
The mobility budget is based on three pillars. In the first, the worker can opt for a smaller or more environmentally friendly company car. The second, which can be combined with the first, offers the employee a range of sustainable mobility possibilities such as public transport, bicycles (possibly electric) or electric scooters, along with a rent subsidy or financial assistance to obtain accommodation closer to the workplace.
In the third pillar, the balance remaining at the end of a given year can be converted into money and transferred to the employee’s account. This amount would be tax-free, but subject to social security deductions.