1 / 10

Green Taxation in Europe

www.pwc.com. Green Taxation in Europe. 8 December 2010 Bart Vanham. Consumer demand needs to be stimulate d Lessons from history. “We must influence the market, not simply supply it with vehicles that people don’t want to buy.” Daimler CEO Dieter Zetsche. Renault Electric

phillip
Download Presentation

Green Taxation in Europe

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. www.pwc.com Green Taxation in Europe 8 December 2010 Bart Vanham

  2. Consumer demand needs to be stimulatedLessons from history “We must influence the market, not simply supply it with vehicles that people don’t want to buy.” Daimler CEO Dieter Zetsche Renault Electric • Low-selling vehicles • 2002 electric Kangoo sold 151 units. Opel Corsa Eco • 115g/km car. Priced as standard Corsa 1.0L • Low sales due to trans., tyres and performance Audi Duo • Plug-in parallel hybrid introduced 1997 • 60 units sold VW Golf CityStromer • Pure electric MK III Golf • High cost and lower performance vs standard Golf saw <150 sold. VW Lupo 3L • High-tech weight and fuel saving technology • Positive initial response, but ultimate market ltd. Fiat SeicentoElettra • 1998 electric Seicento • Same issues as the Golf saw only 294 made over a four year period.

  3. Maintain competitiveness Economic efficiency Lower emissions Lower emissions Social acceptability Maintain tax revenues Avoid distortion of competitiveness Social acceptability Pushing technology and demand – balanced approach Governmental industry push and consumer pull are essential for overall success. Timing of implementation of different measures is critical. Governmental need for action Industry Push ConsumerPull Requirements National Tax Laws – Best practices EU CO2 Directive

  4. Green Taxation in Europe • Car Taxation as the policy instrument • Taxation systems very disparate • No harmonisation due to tax sovereignty of countries Fuel taxes Ownership taxes Registration Fee Registration Tax Annual circulation tax CO2 ratings Company car tax VAT

  5. Green Taxation in Europe • 17 Member States use Co2-emissions as tax base for one or more car taxes* • Measures in respect of vehicle registration tax • IE, DK, BG, NL, DE, SL, AT, FR • Measures in respect of road tax and road charging • CZ, SE, UK, LU, CH, IE • Measures in respect of company cars • UK, BE, NL • Measures in respect of a discount/refund on the purchase of a environmental friendly new car • BE, SP, DE, FR, SE, IT * See the International Fleet Guide 2010 for more information (www.fleet-europe.com)

  6. Green Taxation in Europe 17 Member States use Co2-emissions as tax base for one or more car taxes Case Study*: Impact of Co2 reductions • 2000 company cars in 10 countries • 10% Co2-reduction per country, ceteris paribus • Savings: • BE: 163kEUR, BIK: 52kEUR • DE: 50kEUR • NL: 115kEUR, BIK: 120kEUR • UK: 50kEUR, BIK: 105kEUR • IT: 162kEUR • AU: 158kEUR • SP: 60kEUR • PT: 132kEUR, BIK: 85kEUR • SE: 160kEUR • FR: 44kEUR • TOTAL: 1.094kEUR, • 90kTON Co2 *see tool on www.tcoplus.com

  7. Green Taxation in Europe • 17 Member States use Co2-emissions as tax base for one or more car taxes • Scrappage schemes only accelerate sales! • CEE countries old(er) car taxation systems and lower taxation level • New developments in terms of stimulating market for Electric Vehicles with tax exemptions and (tax) subsidies • First signs of evolution versus taxing the use of the vehicle • Kilometre charging (BE, NL?, UK (London), …) • Because of mobility issues and electric vehicles

  8. Green Taxation in Europe • 17 Member States use Co2-emissions as tax base for one or more car taxes • Best practices/recommendations • Registration taxes not effective • Attention with annual circulation taxes • Incentives pull • Company cars as tool

  9. Governmental needs for action Maintain competitiveness Economic efficiency Lower emissions Lower emissions Social acceptability Maintain tax revenues Avoid distortion of competitiveness Social acceptability Industry Push ConsumerPull Pushing demand – Technology is leading Governmental industry push and consumer pull are essential for overall success. Requirements National Tax Laws – best practices EU CO2-Directive Company fleets as tool. Use scrapping scheme to remove old EURO 0 and 1 cars and accelerate the sale of new environmental friendly cars. Link annual circulation taxes to Co2-emissions (temporary measures for oldest cars). Abolish registration taxes EU proposal: 120 (130) g/km CO2 by 2012 equal to a 19% emission reduction compared to today; labeling. Intensive discussions ongoing, EU directive expected within this year.

  10. “The art of taxation consists in so plucking the goose as to get the most feathers with the least hissing.”  ~Jean Baptist Colbert, attributed Conclusion “The art of taxation consists in so plucking the goose as to get the most feathers with the least hissing and the goose being stimulated to change into positive desired behaviour.”  ~Bart Vanham • © 2010 PricewaterhouseCoopers. All rights reserved. “PricewaterhouseCoopers” refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.

More Related