Kilometer charge, new MRB and farewell to BPM: this is on the table

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There is a lot on the table

Do you no longer pay BPM when purchasing a new car? And do you have to pay kilometer tax for an electric car? That could just be. The outgoing cabinet has presented a number of options that must revise the current system of car taxes. It is up to the next cabinet to give it a blow or not.

Do you have a car at the door? Then you undoubtedly hope that automobility remains affordable. The government, in turn, has climate goals to achieve and also wants to keep the finances up to date. The outgoing cabinet comes with a series of policy options that can possibly revise the current car taxes – consisting of motor vehicle tax (MRB), BPM, addition and fuel excinations.

According to the outgoing cabinet, revising the car taxes is possible for several reasons. First of all, because the government revenues from car taxes are expected to fall in the future according to the current system. That is because ‘more and more’ is chosen for an electric car or commercial vehicle, the government argues. Although you pay more MRB for electric cars due to the often high car weight, the government revenues will decrease on balance. Among other things because there is hardly any BPM paying about the purchase of a new EV and no fuel excise duty is paid, such as with a fuel car. The fact that electric cars are on average more expensive than comparable fuel cars and you therefore also pay a higher VAT amount when you purchase an EV, is, according to the government, only something that has a temporary effect. The outgoing cabinet argues that the prices of EVs and fuel cars will grow towards each other towards 2035.

The cabinet does not intend to weaken the goals in the field of electrification of the fleet. From 2030 ‘all new sales are preferably completely emission -free’ and the entire fleet of emission -free must be emission -free. Nice and nice, but that too has a downside, according to the cabinet. Because the kilometer costs of an EV are generally lower than those of a fuel car, the government expects the combination of a growing fleet and a larger share of EVs in it towards 2040 will provide many more traffic jams. The expected increase in the share of electric cars ensures up to 184% higher congestion pressure compared to the level in 2018 without additional policy. So something has to change, the outgoing cabinet argues. But what?

Road tax to vehicle area

Currently, the height of the motor vehicle tax (MRB) that you pay is determined on the basis of the combination of the fuel type of your car and the weight class in which it falls. To compensate for the multiple weight of electric cars, the tax authorities are currently counting with a temporary rate discount. That is not sustainable and it is complex, according to the outgoing cabinet. According to the government, the only way to be able to burden electric and electrified cars as fuel cars without a heavy battery is to adjust the basis of the MRB. So don’t look at weight, but at the vehicle surface (track width multiplied by wheelbase). Regardless of the type of powertrain, the MRB amount would therefore be the same at the same vehicle area. An additional advantage of this is, according to the government, that there are larger differences in rates between large and small cars, with the effect that smaller cars become more attractive.

Interesting here: the frontal area was not included in the calculation of the vehicle area. This is because this information is available from a too small part of the cars. The CO2 emissions or energy consumption should not be part of determining the MRB, according to the cabinet. Among other things because the difference between small and large cars comes out less and because such data has been recorded in different ways over the years.

Goodbye BPM, Welcome Naval Tax

Nobody in Autoland seems fan of the BPM. The BPM (purchase tax) that you are currently paying when purchasing a new car is determined on the basis of the CO2 emissions of the car. The more CO2 that emits per kilometer, the higher the BPM. From 2035, only electric cars could be sold in the Netherlands. Of course, these themselves do not emit CO2, with the result that the BPM system cannot be kept. You now pay a fixed small amount about the purchase of a new EV, considerably less than with a comparable fuel car. According to the government, the BPM that must be determined with parallel import provides many disputes, reports and therefore administrative pressure.

What could be the solution: registration tax. The word already gives away what that is: a tax that is levied with every name of a vehicle. So it is not just a tax that you pay when purchasing, but also when the vehicle is registration after sale or is levied. According to the government, that would save a lot of administrative hassle. When the expense neutral entering a registration tax, the burden pressure for a car is more spread over time, the BPM is paid in full when purchasing. A big difference. Whether a registration tax for all cars or only to emission -free cars should apply is still the question, according to the cabinet.

The dilemmas: If the registration tax applies to all cars, it must be determined whether there is a transitional arrangement for existing fuel cars that BPM has already paid and what a possible tariff structure of the tax will look like. Is the registration tax for EVs differentiated on the basis of age, vehicle surface and/or energy consumption? All considerations and issues that the outgoing cabinet is struggling with in its policy options.

Taxing use: mileage tax

The third and final ‘Dowricht’ that the outgoing cabinet throws on the table relates to the concept of ‘paying to use’ or loved concept of ‘paying’. With ‘fossil cars’, about half of the car taxes consists of costs, says the cabinet. With electric cars that is only 19 percent. Adjusting energy tax is not a solution, the government argues. This is because EVs are often charged at home and the tax authorities cannot see where the electricity that you consume at home is going. There we go: ‘A possibility to burden the use of an (electric) car in the future is the introduction of a kilometer tax. In addition, you pay a rate per kilometer driven, a rate that may be determined on the basis of vehicle surface or energy consumption. In addition, the number of kilometers driven could be determined on the basis of the counter registration of the RDW.

Here too: no choices have been made. They are up to the next cabinet.

A Lot is on the table

Will you No Longer Pay BPM When Purchasing A New Car In The Future? And will you have to pay a kilometer charge for an electric car in the future? That could just be the case. The Caretaker Cabinet Has Presented a Number of Options That Should Revise The Current System of Car Taxes. It is up to the next cabinet to approach or reject this.

Do you have a car parked in front of your through? Then you undoubtedly hope that automobility will remain affordable. The Government, in Turn, Has Climate Goals to Achief and would also like to keep the finances SomeWhat in Order. The Caretaker Cabinet is Coming Up With A Series of Policy Options That Could Possible Revise The Current Car Taxes – Consisting of Motor Vehicle Tax (MRB), BPM, Addition and Fuel Excises.

Accordance to the Caretaker Cabinet, Revising Car Taxes is Possible for Several Reasons. First of All, because Government Revenue from Car Taxes is expected to decline in the future under the current system. This is because ‘Increasingly’ An Electric Car or Company Car is Chosen, The Cabinet Reasons. Despite the fact that you pay more mrb for electric cars because of the of high vehicle weight, Government Revenues Decrease on Balance. Partly because Hardly Any BPM is Paid on the Purchase of a New Ev and No Fuel Excise is Paid As With A Fuel Car. The fact that electric cars are on backage more exensive than comparable fuel cars and that you therefore also pay a higher vesse amount when purchasing an ev is, accordance to the cabinet, only something that has a temporary effect. The Caretaker Cabinet Argues That the Prices of Evs and Fuel Cars Will Grow Towards Each Other Towards 2035.

The Cabinet does not intend to the goals in the field of electrification of the vehicle fleet. From 2030, ‘All new sales are preferably full-free emission-free’ and by 2050 the entire vehicle fleet should be emission-free. Nice and nice, but accordance to the cabinet this also has a downside. Because the kilometer costs of an ev are generally lower than them of a fuel car, the cabinet expects that the combination of a growing vehicle fleet and a larger share of evs in it will caus more traffic traffic jams Towards 2040. Up to 184% Higher Traffic CONSTION COMPARED TO THE LEVEL in 2018. Something has to change, The Caretaker Cabinet Reasons. But what?

Road Tax Based on Vehicle Surface Area

Currently, The Amount of Motor Vehicle Tax (MRB) You Pay is determined on the Basis of the Fuel Type of Your Car and the Weight Class in which it falls. To compensate for the addition weight of electric cars, The Tax Authorities Currently Apply A Temporary Rate Reduction. That is not sustainable and it is complex, accordance to the caretaker cabinet. Accordance to the cabinet, the only way to tax electric and electrified cars in the same way as fuel cars without a heavy battery is to adjust the basic of the mrb. So don’t look at Weight, but at the vehicle Surface Area (Track Width Multiplied by Wheelbase). Regardless of the Type of Powertrain, The MRB Amount would Therefore Be the Same With The Same Vehicle Surface Area. An additional advantage of this, accordance to the cabinet, is that larger differentials in rates arise between Large and Small Cars, with the effect that narrower cars Become more attractive.

Interesting here: The Frontal Surface Area is not included in the calculation of the vehicle Surface Area. This is because information is available for too small a part of the cars. The CO2 Emissions or the Energy Consumption (EV) should not be part of determining the MRB, Accordination to the Cabinet. Among Other Things, because the differentence between small and large cars is less applian from this and because they are has been recorded in Different Ways over the years.

Farewell BPM, Welcome Registration Tax

No one in Car Land Seems to Be A Fan of the BPM. The BPM (Purchase Tax) That You Currently Pay When Purchasing A New Car is determined on the Basis of the Co2 Emissions of the Car. The More Co2 It Emits per kilometer, The Higher the BPM. From 2035, Only Electric Cars Should Be Sold in the Netherlands. They Themselves Naturally Do Not Emit Any CO2, with the result that the BPM System is not Sustainable. You now pay a fixed small amount on the purchase of a new EV, Considerly Less Than With A Comparable Fuel Car. Accordance to the cabinet, the bpm that must be determined for parallel import causes many disputes, reports and therefore administrative pressure.

What the Solution Could Be: Registration Tax. The Word Already Gives Away What That Is: A Tax That Is Levied On Every Registration of A Vehicle. It is therefore not only a tax that you pay on purchase, but also when the vehicle is re-registered after sale or it is Levied. Accordance to the cabinet, that would save a lot of administrative hasle. When introducing a registration tax in a revenue-neutral manner, The Tax Burden on a car is spread more over time, The BPM is paid in Full Upon Purchase. A Significant Difference. Accordance to the cabinet, it is still the question whether a registration tax should apply to all cars or only to emission-free cars.

The Dilemmas: if the registration tax is to Apply to All Cars, it must be determined Whether there will be a transitional arrangement for existing fuel cars for which bpm has already leg possible tariff structure of the tax look like like. Is the Registration Tax for EVS Differentiated on the Basis of Age, Vehicle Surface Area And/Or Energy Consumption? Piece by Piece Considerations and Questions with which the Caretaker Cabinet is struggling in its policy options.

Taxing use: kilometer charge

The Third and Final ‘Line of Thought’ That The Caretaker Cabinet is Putting on the Table Relates to the Concept of ‘Pay Per Use’, which is Feared or Loved by Many. Accordance to the cabinet, Approximately Half of the Car Taxes for ‘Fossil Cars’ Consist of Charges on Use. For electric cars that is only 19 percent. Adjusting Energy Tax is not a solution, The Cabinet Reasons. This is because it is also charged at home and the tax authorities cannot see where the electricity you consume at home goes. Here we go: ‘A possibility to tax the use of an (electric) car in the future is the introduction of a kilometer tax. You Therefore Pay A Rate per kilometer Driven, A Rate that May be determined on the Basis of Vehicle Surface Area or Energy Consumption. The Number of Kilometers Driven Could Be Determined on the Basis of the Odometer Registration of the RDW.

Here too: no choices have leg made. Those are for the next cabinet.

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