12 Oct 20

Flanders lowers registration tax on 70% of new models

Flanders, the northern region of Belgium, is implementing important changes to its vehicle registration tax on 1 January 2021. New vehicles on the higher end of the pollution scale will pay more tax; the least polluting vehicles will pay less. The level of CO2 pollution will no longer be determined by the results of the lab-based NEDC test cycle, but by those of its replacement, WLTP, the results of which are based on real-world data. Tax breaks for PHEVs and CNG-powered vehicles will be abolished. Only BEVs (i.e. full-electric vehicles) will still be exempt from the registration tax.

The Flemish government has calculated that the tax will go down for 71% of new models on the market, while only 29% will experience an increase. However, the average increase will be higher than the average decrease. For example, tax for a new Renault Clio petrol (the most popular model on the Flemish market) will decrease by about €100. However, registration tax for a Peugeot 3008 diesel will increase by €165. The new tax rules also have an impact on the annual road tax, but of no more than a few euros either way. The new rules change nothing for lease vehicles, which remain the responsibility of the federal Belgian government. 

Pictured: highway interchange near Brussels (Image: Shutterstock)

Authored by: Frank Jacobs