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Sustainable Mobility - Tax Reform

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As a component of tax reform, a range of measures have been introduced to promote sustainable mobility:

Since January 1st 2017:

  • A tax deduction for sustainable mobility on zero-emissions privately-owned cars;(bicycles, pedelec25 and cars);
  • A reassessment of company car benefits in kind based on the vehicle’s greenhouse gas emissions (in particular, CO2 emissions) and its air pollution emissions (in particular, NOx and particle emissions).

Since January 1st 2018:

  • A new tax deduction for sustainable mobility on privately-owned cars,Plug-in Hybrid Electric Vehicles (PHEV);
  • A tax credit for zero-emission company cars, not subjected to any lease contract

These measures were introduced to promote public health and the protection of the environment, and accompany other measures that promote the use of public transportation and soft mobility. Indeed, two-thirds of investments have been allocated towards the construction of public transportation infrastructure, and one-third towards investments in road infrastructure.

Context and objectives

The government has opted for an incentive rather than a repressive approach, as follows:

  • Zero-emissions vehicles such as 100% electric vehicles, bicycles and pedelec25, fully benefit from the new incentive measures;
  • Low-emission vehicles such as Plug-in Hybrid Electric Vehicles benefit from less incentive measures

A tax deduction or a reassessment of benefits in kind for eco-responsible drivers is being implemented