“Wallonia Sets New Car Tax Reform to Reduce CO2 Footprint”

2023-04-30 09:47:56

We talked regarding it for almost a year, this time the decision is made. In July 2022, the Walloon regional Minister for Climate, Energy and Mobility and Infrastructure, the Ecolo Philippe Henry had tabled a draft decree aimed at broadly reforming car taxation. Above all, he had received a rain of opposition from all directions. Car and taxation are always complicated. There followed an outcry from certain lobbies and even threats once morest the minister who was briefly placed under police protection. The project has since been constantly postponed, given the tensions aroused within the PS-MR-Ecolo majority. New attempt by the minister since February, with a lighter draft decree compared to the previous version. And this time it works.

The revamped Henry project passed the ramp for a second reading in the Di Rupo government this Friday. The ambitions have certainly been revised downwards, in particular to upset as few people as possible: if the circulation tax and the annual circulation tax – two different things – are both of regional competence, the changes here will only concern in the end only the circulation tax (TMC), the one therefore that we pays when purchasing a new or used vehicle. The emphasis remains on the more or less polluting nature of the vehicle and therefore its weight, its power and its type of engine, the project falling within the framework of an overall desire to reduce the CO2 and greenhouse gas footprint. Wallonia by 55% by 2030, transport being 22% responsible.

A very modular TMC

The registration tax (TMC) will decrease or increase depending on the impact of the vehicle chosen on the infrastructure (damage to roads and occupation of public space), the environment (impact on health and the climate ) or the risks in the event of an accident (heavier and more powerful vehicles involved in more serious accidents). The most polluting, the heaviest, the most powerful and thermal engine vehicles will therefore be financially penalized with a higher tax. Which means eg. that light electric vehicles will be less penalized than heavy and powerful cars running on diesel (even more penalized than gasoline). Philip Henry: “The message to our fellow citizens is clear: through the registration tax, it is the act of purchase that is impacted, which is ultimately the most determining factor in terms of the future composition of the car fleet.”.

The reform provides that the TMC amounts to a minimum of 50 euros and does not exceed a ceiling of 9000 euros. The general measure is adapted for certain special cases such as large families who must necessarily use a more spacious and therefore larger, heavier vehicle. A reduction of 100 euros also valid for families with shared custody (3 children minimum per household), but be careful in all cases, this advantage is limited to one vehicle per household.

The text adopted today by the Walloon government will be submitted to the Council of State for an opinion. The entry into force of the reform and therefore the new version registration tax is scheduled for July 1, 2025, only on new registrations, which should allow people to anticipate the new tax when buying their car. next vehicle.

The idea is to encourage the purchase of less polluting vehicles. But the most expensive and powerful vehicles, even if they are electric, will also contribute more than today.

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