More people than ever in Belgium are driving company cars, with the number rising 12% over the past five years to more than 586,000, De Tijd reported on Saturday, citing figures from the National Social Security Office and leasing federation Renta.
Despite the growth of the mobility budget and tighter regulation, employers and workers in Flanders are still choosing company cars in increasing numbers.
At the end of March, 586,312 cars subject to a CO2 solidarity contribution were on the road in Belgium. This tax applies to the private use of a company car. The number of leased cars has risen by a third.
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It remains a very attractive fringe benefit,” Veerle Michiels, a mobility specialist at HR services group SD Worx, told the newspaper. “Whereas a company car used to be a privilege for senior executives, it is now much more widespread in lower-level roles as well.”
Remarkably, sales of new company cars have been falling for some time. According to Renta, the overall fleet has still grown because company cars are being leased for increasingly longer periods.
The average contract length has increased from three to four years to more than four years, or 51 months.
For company cars registered from next year, the tax deductibility rate will gradually fall from 100 per cent to 67.5%.
