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    2.4 billion tax increase on vehicles since 2015

    © Belga
    © Belga

    All motor vehicle taxes have increased over two years. Taxes on automobiles have risen extremely quickly in 7 years, with an overall 22% increase in the gross amount, L’Echo reports Thursday, quoting figures from FEBIAC, the Belgian Federation of Automobile and Cycle Industry.

    The tax windfall of motorized vehicles is booming. In the space of two years, income for the Belgian State increased by 2.38 billion euros.

    More cars were sold in 2017 than in 2016 or 2015: therefore the VAT collected on new cars progresses. Ditto for parts and accessories. The kilometer tax, which replaces the Eurovignette, allows tax revenue to increase by 500 million in 2017 when compared to 2015.

    The excise duties on fuel have also increased significantly, by 812 million euros in two years. The excise duties on diesel and petrol are by far the main source of tax income, to the tune of 5.5 billion euros.

    The reverse ratchet system, through which the government slows the fall in prices by increasing excise taxes, raises, in particular, revenues from diesel sales.

    All these figures are compiled by FEBIAC, who calculated that motor vehicle taxation, all-inclusive, was 19.6 billion USD in 2017, shared between the Federal and the Regions.

    The Federation of Manufacturers pleads in favor of a kilometer tax on cars, to replace other taxes, in order to encourage a modal shift in cities.

    The Brussels Times