2023-04-29 06:23:00
The Walloon government presented its 2023 budget adjustment on Friday morning. Thanks to the efforts made during the presentation of the initial budget and the improvement of the socio-economic parameters, the government was not forced to make new financial efforts. On the contrary, he authorized himself to release some means to finance new projects. In particular, the government decided to pay itself the amounts that were to be requested from the municipalities and local residents for the restoration of the banks damaged at the time of the floods of July 2021. Resources will also be granted to the network manager to help them to “installing, for example, measuring instruments to better understand the flows, identify inverter stalls, intervene proactively or even reinforce the network where necessary”explains Minister-President Elio Di Rupo (PS).
The government took the opportunity to present the latest version of its automotive tax reform. It presents a simplified version of the first text which had been presented a few months ago and had created discord between liberals and ecologists. We now know that only the registration tax – the one that must be paid when buying a vehicle – will be reviewed. The road tax will remain unchanged.
The reform will come into force in July 2025 and by necessity, will only concern vehicles purchased from then on. What should be remembered?
The annual road tax will not change
First, the government has decided to favor vehicles that emit no or very little CO2. Thus, the tax on entry into service (TMC) of small and medium-sized electric vehicles as well as that of hybrid vehicles in the same category will be revised downwards. On the contrary, large electric cars will see their TMC explode. “It is a way of integrating tax justice within the range of electric cars”specifies the Walloon Minister of Mobility, Philippe Henry (Eco).
An example is worth more than long speeches. The TMC of the Renault Megane E-Tech, for example, will decrease from 61.5 euros to 50 euros, while the circulation tax will still cost 92.9 euros per year. The TMC of the Model 3 of the American company Tesla, which is a large electric car, will drop from 61.5 euros to… 1,588.2 euros (for an unchanged road tax of 92.9 euros). “For those who can afford a car of this price, the TMC is proportional”insists Di Rupo who feels the criticism coming.
The Walloon government has also provided reductions in TMC for large families and for families in shared custody. It should also be noted that on second-hand vehicles, a degression of the TMC will be applied according to the age of the vehicle. “The reduction is 10% per year up to 5 years and 5% per year beyond 5 years and up to 15 years. It is a question of not penalizing citizens who do not have the means to buy a recent vehicle”concludes Philippe Henry.
The electric car for less than 25,000 euros is indeed announced
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