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15 October, 2020 FRANCE REDUCES ENVIRONMENTAL BONUS

France reduces environmental bonus and wants to massively increase penalty tax for fuel guzzlers

As planned, France will soon reduce the amount of support for the purchase of electric cars again. From the current 7000 to 6000 euros from 2021, and then to 5000 euros from 2022. The subsidy for plug-in hybrids will be reduced from 2000 to 1000 euros from 2021. France will only pay the premium at this level for cars costing less than 45,000 euros. The separate subsidy for low-income households of 3000 euros will be maintained for the time being.

The penalty tax known as “malus écologique”, which is levied on the purchase of a particularly polluting combustion engine, such as an oversized SUV or a powerful sports car, could reach staggering levels. Buyers of vehicles that emit more than 213 grams of CO2 per kilometre in the WLTP test are currently paying the maximum rate of €20,000 to the tax authorities. This value is reached with cars that have a standard consumption of more than 8.9 litres of petrol or 8 litres of diesel. The 20,000 euros seem even more favourable than the planned increase in the environmental tax, which France introduced in 2008, but at a much lower level.

With the planned 40,000 euros environmental penalty from 2021, the penalty tax doubles at a stroke compared to the previous year. A further increase to 50,000 euros is planned for 2022. However, the full amount of the levy only affects a small proportion of new cars usually sold in France. The amount of the environmental penalty varies according to CO2 emissions and is due from an emission level of 138 grams of CO2 per kilometre. With this value, the State adds a favourable €50 to the purchase price. From 160 grams of CO2 per kilometre, it is a four-digit figure, the 10,000 euros are reached at 196 grams per kilometre. France also wants to adjust the limit values in future: From 2021, the environmental penalty is to be collected from as little as 131 grams of CO2; in 2022, the starting value is to be reduced to 123 grams.

Source: Electrive – France reduces environmental bonus again from 2021 // AutoPlus – Malus 2020: le barème WLTP confirmé pour le 1er mars

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Great Britain brings forward combustion ban to 2035 at the latest

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