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Incentives Shift May Push Netherlands from Plug-Ins to EVs
The Dutch government's plan to reduce corporate tax breaks next year for plug-in vehicles but not pure-electrics is likely to shift demand to EVs, notes Automotive News Europe.
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The Dutch government's plan to reduce corporate tax breaks next year for plug-in vehicles but not pure-electrics is likely to shift demand to EVs, notes Automotive News Europe.
The Netherlands imposes a 25% annual tax on conventional cars. Plug-ins purchased by company fleets currently pay 7%-14%, depending upon their carbon dioxide emission levels. The difference can save company as much as €7,000 per fleet vehicle each year.
But the government plans to hike those rates on company cars to 14%-21% in 2016. The corporate tax rate for EVs will remain at 7%.
Plug-ins outsold EVs in the Netherlands by four to one in January-March, according to JATO Dynamics. Carmakers tell ANE they expect a significant swing in that ratio when the new tax rates take effect.
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