Company cars are generally undertaxed in the EU, distorting the economy, adding welfare costs to society including greater CO2 emissions, and generating artificial demand for larger cars.
[mailchimp_signup][/mailchimp_signup]These are among the conclusions of a new Danish study into the tax treatment of company cars, which presents new, nearly-EU-wide estimates of the levels of subsidies to company car users. The study, ‘Company Car Taxation’ by Copenhagen Economics, says direct revenue losses may be close to 0.5% of the EU’s GDP (€54 billion), with Belgium and Germany topping the charts with 1.2 and 0.9% respectively. It says evidence from Belgium and the Netherlands suggests that pure business use represents only 20-30% of company car use, the rest being private use.
T&E's annual overview of key transport trends, challenges and achievements
European transport is still heavily reliant on fossil fuels, but electric vehicles are on the charge as the EU’s green policies start to bite. Powerin...
State of European Transport report shows that transport emissions are starting to fall as the EV market grows, but carbon savings are being undermined...
T&E reaction to Automotive Plan: Positive steps on fleets, but the weakening of CO₂ targets and vague support for battery production will see Europe f...