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The federal government has agreed on the principles of greening the company car fleet. From 2026, only electric company cars will be able to benefit from a tax-friendly regime, it says. What exactly that regime will entail, Minister of Finance Vincent Van Peteghem (CD&V) will later explain, but it is certain that the Vivaldi coalition already laid down in the coalition agreement that all new company cars must be green by 2026. In addition, the CD&V Deputy Prime Minister proposed introducing a tax reduction on investments in charging infrastructure and also working out a mobility budget for those who do not have a company car.

The most important ministers have already discussed those details before, but did not agree at the time. The left-wing government parties were reportedly concerned about the financial impact of the measures and with the full tax deductibility for electric company cars, Flemish newspaper the newspapaer.

Existing contracts will not be affected, says the spokesman for Prime Minister Alexander De Croo (Open Vld). The government wants to create a “clear and stable framework” so that companies and employees can make informed purchasing and investment decisions.

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The Vivaldi coalition already laid down in the coalition agreement that all new company cars must be green by 2026.
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