New Traffic Tax on Electric Vehicles in Flanders
In a notable policy shift, the new Flemish government has decided in its coalition agreement that buyers of electric cars will now have to pay the Registration Tax (BIV) as well as an annual circulation tax. This measure is part of a broader set of adjustments that will significantly impact motorists in Flanders.
Until now, electric vehicles in Flanders benefited from an exemption from the BIV and circulation tax, a fiscal measure intended to encourage the transition to more environmentally friendly transportation. However, with the argument that the "rapid greening" of the vehicle fleet makes fiscal support now unnecessary, and to counter the revenue erosion due to these exemptions, the government has decided to eliminate them.
The new regulation states that the BIV and circulation tax for electric cars will be lower than for combustion engine vehicles, but the end of the EV grant, currently given at the purchase of a new or second-hand electric car, will come as soon as legally possible. The government, however, assures that applications already submitted will be processed under the old regulation.
This policy change reflects a broader strategy to adjust taxation to the new reality of an increasing number of electric vehicles on the roads. The Flemish government emphasizes that electric vehicles, like traditional vehicles, use public roads, which justifies the introduction of these taxes.
Furthermore, the coalition agreement includes measures such as the expansion of 30 km/h zones and a review of the strategy for public charging infrastructure, but it foregoes further tightening of the conditions for low-emission zones in cities like Antwerp and Ghent, considering that the evolution towards an emission-free vehicle fleet will sufficiently improve air quality.
These developments signal a shift in government policy, where initial incentives for electric transportation give way to a more balanced tax policy between different types of vehicles, which will undoubtedly fuel debate over the affordability and appeal of electric cars in Flanders.
