Tax addition 2017: hybrid lower addition lost
Car drivers have been inundated with new tax rules since 2008, a development that can hardly be followed. The fact is that the greening of our vehicle fleet cost the treasury billions in subsidies. Business drivers in particular, who still account for half of all car traffic, were not spared. The reason for this was the tax addition, the amount that one has to pay privately if one is in a company car ?? drives. And at the start of a new year, the car tax system is usually overhauled. The automotive industry feared the worst for hybrid car sales from 2017 onwards. After all, the favorable addition rates for that type of car disappeared at that time. On the other hand, a revival was expected for the petrol car, especially among lease drivers.
- What is meant by addition
- Low addition hybrid car off the track
- Benefit from a lower addition for another 5 years
- Temporary upturn in sales of petrol and diesel cars is expected
- Tax preferential treatment only for fully electric cars
- The alternative for business drivers: no private driving
What is meant by addition
Addition is a tax levy that is payable on the private use that one makes of a business car. Motorists therefore only have to pay addition if they come by company car ?? also make private kilometers. The amount of that addition depended on the amount of CO2 that the car emitted. Depending on this, the addition could vary from 4% to 25% of the catalog value.
Low addition hybrid car off the track
From 2017, the low addition of 4 percent only applies to a fully electric car. For all other cars, an addition of 22 percent applies. This also applies to hybrid cars. The Rutte II cabinet considers the environmental benefits of hybrid cars too small to justify an exceptional position. In practice, many hybrid car owners often rely on the petrol engine because of the limited range of the electric motor.
Benefit from a lower addition for another 5 years
Those who still wanted to benefit from the lower addition for, for example, a plug-in hybrid such as the Mitsubishi Outlander, would have purchased the best one at the end of 2016. It was also possible to purchase a lease car in 2017, which was registered in 2016. In that case, people could benefit from a lower addition for another 5 years.
Buy second hand sometimes attractive
It is interesting in this context that the weight correction for the Motor Vehicle Tax (MRB) was also canceled from 2017. From that moment on, the MRB is calculated on the full weight of the vehicle, including the battery. The owner of a plug-in hybrid will continue to benefit from a halved MRB rate until 2020. So it remains interesting for private individuals to purchase a second-hand.
Temporary upturn in sales of petrol and diesel cars is expected
The automotive industry is therefore eagerly looking forward to a suitable range of fully electric cars that are also interesting for SMEs and private individuals. At the beginning of 2017, that offer was still too limited and the range (usually between 100 and 200 kilometers) was still too small for regular use. It was therefore expected that sales of diesel and petrol cars will pick up further in 2017 and 2018. Several car brands, including Volkswagen, have announced new electric models with a longer range, models that will be introduced around that time. It is therefore expected that the comeback of petrol and diesel cars will only be temporary. It cannot be ruled out that in 2020 about 10 percent of lease cars will be electric again. At the beginning of 2017, this was only 2 percent.
Tax preferential treatment only for fully electric cars
Only fully electric cars will therefore still receive preferential tax treatment. The government would prefer to see that after 2035 only emission-free cars roll out of the showroom. That is the reason that the government continues to encourage fully electric driving until 2020 for tax purposes. The addition rate for private use of this type of business car remains 4%. Moreover, these cars are completely exempt from MRB and BPM.
The alternative for business drivers: no private driving
From 2017, fully electric driving is therefore the only possibility to qualify for the addition of 4 percent.
The changes in the tax addition will undoubtedly also mean that countless business drivers will resume their old driving behavior: no longer driving privately in the boss’s car. It is not uncommon for an extra small car to be purchased for private kilometers, something which will have an adverse effect on the environment.