The proposal would increase what are already the continent’s most expensive taxes on polluting passenger vehicles.
Governments around the world are taking a range of approaches to accelerate the demise of the internal combustion engine. California recently announced its intention to ban them by 2035. The Chinese government has invested more than US $ 30 billion to fuel its electric vehicle industry. And the subsidies gave a boost to plug-in hybrids and fully battery-operated cars this summer in Europe.
If passed, the French law would add to the pressure exerted on the automotive industry by the European Union’s Climate Objective Plan 2030, which calls on the bloc to reduce its CO2 emissions by 55% compared to 1990 levels in instead of the 40% previously planned. To achieve this, the Commission estimates that car manufacturers must phase out combustion engines and cut CO2 emissions by around half compared to the 2021 targets.
While other EU countries also apply a special tax on passenger cars relative to their CO2 emissions, no country charges nearly as much as France’s current maximum levy of € 20,000, according to the Association. European car manufacturers. By way of comparison, the highest rate in Belgium and Italy is 2,500 euros.
As part of France’s latest malus plan, the minimum threshold for a car to qualify for an emissions-based tax will be lowered over the next two years, and penalties will be increased, according to a budget document from the Ministry of Finances.
Cars emitting more than 225 grams of carbon dioxide per kilometer will be taxed at the maximum rate of 40,000 euros next year and 50,000 euros in 2022. The charge is capped at half the price of a vehicle.
Lamborghini, Ferrari and Porsche sports cars, as well as premium luxury Bentley, Rolls-Royce and Mercedes-Benz models are among those who could be hit by the upper limit tax, according to data compiled by Bloomberg Intelligence .
Models that would be subject to the full amount of tax include Lamborghini’s Urus and Aventador models; Portofino and 812 from Ferrari; Porsche 718 Spyder and 911; Rolls-Royce Ghost and Cullinan; Bentley’s Flying Spur and Mercedes AMG and G-Class cars.