Company car taxation has direct cost implications for both employers and employees, and is thus crucial vehicle fleet selection. Understanding its dynamics is essential, both for your company car policy and your international fleet and mobility strategy.
Since years governments use car taxation for two different objectives: securing revenue, and working towards a cleaner, greener society. They do this following two distinct fiscal paths: granting incentives for vehicles with alternative powertrains, and penalising those with more polluting powertrains.
But car manufacturers keep lowering CO2 emissions and both the private and corporate sectors are choosing ‘greener’ vehicle options. As the revenue streams are under threat, governments need to and will find new measures to keep money flowing in. Slowly but surely, car taxation will start promoting the new mobility paradigm. Car pooling, the use of bikes, and other shared mobility options will be favoured, in order to help us shift from car ownership to car and mobility usage.
As a consequence, company car taxation will become even more complex in the future, with even more local tax variations under the guidelines of a European tax umbrella.
So, where today corporate fleets are both pushed and pulled towards lower-emission and alternative powertrain vehicles, in the future they will be taxed to drive forward smart alternative mobility schemes. From Total Cost of Ownership to Total Cost of Mobility – you’ve heard it before…
Whether or not you and your company are already considering new mobility, the 2017 edition of the Fleet Europe Taxation Guide
is your comprehensive tool to decide on the right taxation choices for your corporate fleet across Europe.