The government is “very close” to reaching agreement on the mobility budget. The indication came on Thursday from the Minister for Finance, Johan Van Overtveldt, during the parliamentary discussion on the bill, which would create a transport-based mobility allowance.
The mobility allowance, also known as “cash-for-car”, offers workers who have run a company car for a sufficient length of time the opportunity to return it in favour of a “mobility allowance”, which will be subject to the same advantageous tax and social status as a company car.
The transport budget has been proposed by various social partners. The system entails an annual budget, enabling the employer to grant workers an alternative to a company car. In such a case, the individual could replace their car by a more environmentally-friendly means of transport, or could buy a smaller car, the use of which could be combined with public transport.
The law on the mobility allowance was due to be approved on Thursday evening in parliament. Moreover, the government is “very, very close” to agreeing the mobility budget. The point could be approved within the Budget Ministerial Select Committee on Friday morning.
The issue still needing to be resolved is that of the budget balance, which would remain in individual cases when the given worker has used the system. It was indicated on Thursday evening that in most cases this amount would be subject to social security contributions, but would be exempt from income tax ordinarily deducted at source from salary.