The new federal government in Belgium has decided to reconsider the tax deductibility of plug-in hybrids (PHEVs). This decision is seen as good news for the automotive sector, particularly for business drivers who are not yet ready to switch fully to electric vehicles.
Until now, the fiscal benefits of PHEVs had been gradually phased out, with a decreasing deductibility rate each year. However, under the new government agreement, plug-in hybrids emitting less than 50 g/km of CO₂ will remain 75% tax-deductible for the next three years. This percentage will only start decreasing from 2028, and even then, at a much slower rate than originally planned.
The automotive sector has responded with mixed reactions to this decision. Some brands, such as Mercedes-Benz Belux, view it as a positive development, particularly because they offer a wide range of PHEVs, both petrol and diesel, with a substantial electric driving range. Bastien Van den Moortel, Press Relations Manager at Mercedes-Benz Belux, describes the measure as "good news, considering the solutions we can offer to company car drivers."
However, there are also concerns. Kaat Van Severen from Astara Western Europe warns that this change once again creates uncertainty for businesses and private individuals. The constant adjustments to fiscal policies make long-term fleet planning more difficult.
Koen Claesen of Van Mossel Belgium and Luxembourg takes a more optimistic stance, expecting that more companies will choose hybrids over fully electric vehicles. This could also contribute to a better balance between supply and demand in the second-hand market, where hybrids are currently more popular among private buyers than fully electric cars.
At Renault Belux, however, there is some caution. The company points out that the measure does not specify whether it applies to both non-rechargeable and rechargeable hybrids, making it difficult to plan sales strategies. Additionally, this measure could slow down the transition to a greener vehicle fleet, despite many companies having already adapted based on previous tax regulations.
Toyota and Lexus continue to follow their multipath strategy, offering EVs, PHEVs, and HEVs. They believe this decision will encourage some companies to reconsider PHEVs, especially for compact models where the availability of fully electric vehicles remains limited. Kia Belux, with its wide range of powertrains, expects to remain flexible in meeting the diverse needs of its customers.
This fiscal adjustment therefore provides a temporary reprieve for plug-in hybrids, which many still see as a valuable intermediate step toward a fully electric fleet. This is particularly relevant for companies and drivers who do not yet have the necessary charging infrastructure or for whom an electric vehicle is not always practical.
The automotive sector is now awaiting further clarification on these measures in legal texts to fully understand their impact and adjust their strategies accordingly.
