Automotive taxation in the Netherlands - ft.dk · The effects of fiscal measures on passenger car...

Automotive taxationin the Netherlands

The effects of fiscal measures on passenger car sales in the Netherlands

Skatteudvalget 2013-14SAU Alm.del Bilag 11Offentligt

RAI Vereniging

Trade Association for the automotive industry in the Netherlands

Since 1893

More than 500 members

Passenger cars, light commercial vehicles, trucks, spareparts, garage-equipment, bicycles, motorcycles, mopeds, trailers, coaches etc.

The Dutch Car Park

Background data

Passenger car park 8,1 million vehicles

Annual new car sales approximately 500,000 vehicles

Average annual distance driven 13,317 km (petrol 10,877 km and diesel 23,806 km)

Average new car price: € 25,627

Petrol cars have dominant market share

Petrol79,18%

Diesel17,10%

LPG2,51%

Hybrid1,12%

Electric0,02%

CNG0,04%

Biofuel0,03%

Hydrogen0,00%

Passenger car park by fuel type

Car related taxes in the Netherlands

Various car related taxes:

Motorrijtuigenbelasting(annual road tax)

BTW (VAT, 21%)

BPM (special vehicle purchase tax)

Bijtelling(Benefits in kind, applicable for private use of company cars)

Net list price; 70% Net list price; 66%

BPM; 16% BPM; 22%

VAT; 13% VAT; 12%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

petrol diesel

Price breakdown of passenger cars

BPM

Since 1993

1993 – 2008: BPM is based on nett catalogue price of car

2006: introduction of bonus – malus scheme for fuel efficient cars (with labelling)

2008: gradual conversion from list price to CO2 emission as base for BPM

2013: BPM fully based on CO2 emission

BPM

Main effects of conversion from nett catalogue pricebased BPM to CO2 emission based BPM

1. Rapid downsizing of new car sales,

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Market shares A & B fuel efficiency labels in new car sales

A B

BPM


1. Rapid downsizing of new car sales

11% 11% 10% 10% 8% 10% 9% 12% 12%17% 20%

25% 26% 24% 23%

19% 20% 21% 23%23% 21% 20%

23% 23%23%

21%

24% 27%25% 23%

32% 28%25%

23%20% 21% 21%

18% 20%

21%23%

20%18%

20% 23%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Market share of small cars in new car sales

C Lower Family segment

B City segment

A Small segment

BPM


1. Rapid downsizing of new car sales

2. Rapid decline of BPM tax revenues(2012 target € 2.1 billion,

realisation € 1.7 billion)

-

100.000

200.000

300.000

400.000

500.000

600.000

€ -

€ 500.000.000

€ 1.000.000.000

€ 1.500.000.000

€ 2.000.000.000

€ 2.500.000.000

€ 3.000.000.000

€ 3.500.000.000

2008 2009 2010 2011 2012 2013 (forecast)

BPM revenues versus car sales

BPM

Car sales

BPM

Dutch CO2 emission policy more strict than European norm

2012-1 2012-2 2013 2014 2015

Petrol 110 102 95 88 82

Diesel 95 91 88 85 82

European norm 130 130 130 130 130

0

20

40

60

80

100

120

140

BPM exemptionCO2 emission in grammes/km

BPMPetrol 2012-1 2012-2 2013 2014 2015

exempt from BPM ≤110 ≤102 ≤ 95 ≤ 88 ≤ 82

1 tariff group 111-180 103-159 96-140 89-124 83-110

2 tariff group 181-270 160-237 141-208 125-182 111-160

3 tariff group ≥ 271 238-242 209-229 183-203 161-180

4 tariff group ≥ 243 ≥ 230 ≥ 204 ≥ 181

Diesel 2012-1 2012-2 2013 2014 2015

exempt from BPM ≤ 95 ≤ 91 ≤ 88 ≤ 85 ≤ 82

1 tariff group 96-155 92-143 89-131 86-120 83-110

2 tariff group 156-232 144-211 132-192 121-175 111-160

3 tariff group ≥ 233 212-225 193-215 176-197 161-180

4 tariff group ≥ 226 ≥ 216 ≥ 198 ≥ 181

Tariff for every gram CO2 per km 2012-1 2012-2 2013 2014 2015

1 tariff group € 94 € 101 € 122 € 101 € 88

2 tariff group € 280 € 121 € 145 € 121 € 106

3 tariff group € 654 € 223 € 270 € 228 € 205

4 tariff group € 559 € 539 € 456 € 411

2012-1 2012-2 2013 2014 2015

Diesel surcharge for every gram CO2 per km > 70 gram € 40,68 € 40,68 € 54,92 € 70,17 € 81,36

Bijtelling

Bijtelling is a form of income tax

The private use of a company car (> 500 km per year) is seenas a benefit in kind

If the private use of the company car is limited to less than500 km per year than there is no ‘bijtelling’

0%, 14%, 20% or 25% of the list price of the company car is tobe added to the annual income

Percentage of the bijtelling is based on the CO2 emission of the company car

Bijtelling

Company cars dominate the new car sales

Approximately 60% of new car sales are company cars

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Market share company cars in new car sales1999 - 2013

Bijtelling

Main effects of conversion from nett catalogue price based Bijtelling to CO2 emission based Bijtelling

1. Rapid downsizing of new company cars

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2007 2008 2009 2010 2011 2012 2013

Market shares A & B fuel efficiency labels in new company cars

B A

Bijtelling



2% 3% 3% 2% 1% 2% 2% 3% 4% 6% 8%14% 15%

10% 11%11% 11% 11% 11% 11% 11% 12% 14% 15% 14% 12%

16%22%

17% 13%

34% 32% 30%26% 23% 25%

26%26% 25%

29% 32%

29%24%

30% 35%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Market share of small cars in new company cars

C Lower Family segment

B City segment

A Small segment

Bijtelling

Main effects of conversion from list price based Bijtelling to CO2 emission basedBijtelling


2. Emission limits have major impact on company car sales

-

2.000

4.000

6.000

8.000

10.000

12.000

14.000

16.000

18.000

0 g/

km

53 g

/km

85 g

/km

90 g

/km

94 g

/km

98 g

/km

102

g/km

106

g/km

110

g/km

114

g/km

118

g/km

122

g/km

126

g/km

130

g/km

134

g/km

138

g/km

142

g/km

146

g/km

150

g/km

154

g/km

158

g/km

162

g/km

166

g/km

170

g/km

174

g/km

178

g/km

182

g/km

186

g/km

190

g/km

194

g/km

198

g/km

202

g/km

206

g/km

210

g/km

214

g/km

218

g/km

222

g/km

226

g/km

230

g/km

234

g/km

238

g/km

242

g/km

246

g/km

250

g/km

254

g/km

258

g/km

262

g/km

266

g/km

270

g/km

274

g/km

278

g/km

282

g/km

288

g/km

292

g/km

296

g/km

New company car sales by CO2 emission2012 - 1 petrol

Bijtelling

Main effects of conversion from list price based Bijtelling to CO2 emission basedBijtelling



-

2.000

4.000

6.000

8.000

10.000

12.000

14.000

16.000

18.000

0 g/

km

53 g

/km

85 g

/km

90 g

/km

94 g

/km

98 g

/km

102

g/km

106

g/km

110

g/km

114

g/km

118

g/km

122

g/km

126

g/km

130

g/km

134

g/km

138

g/km

142

g/km

146

g/km

150

g/km

154

g/km

158

g/km

162

g/km

166

g/km

170

g/km

174

g/km

178

g/km

182

g/km

186

g/km

190

g/km

194

g/km

198

g/km

202

g/km

206

g/km

210

g/km

214

g/km

218

g/km

222

g/km

226

g/km

230

g/km

234

g/km

238

g/km

242

g/km

246

g/km

250

g/km

254

g/km

258

g/km

262

g/km

266

g/km

270

g/km

274

g/km

278

g/km

282

g/km

288

g/km

292

g/km

296

g/km

New company car sales by CO2 emission2012 - 2 petrol

Bijtelling




-

2.000

4.000

6.000

8.000

10.000

12.000

0 g/

km

86 g

/km

89 g

/km

93 g

/km

96 g

/km

99 g

/km

102

g/km

105

g/km

108

g/km

111

g/km

114

g/km

117

g/km

120

g/km

123

g/km

126

g/km

129

g/km

132

g/km

135

g/km

138

g/km

141

g/km

144

g/km

147

g/km

150

g/km

153

g/km

156

g/km

159

g/km

162

g/km

165

g/km

168

g/km

171

g/km

174

g/km

177

g/km

180

g/km

183

g/km

186

g/km

189

g/km

192

g/km

195

g/km

198

g/km

201

g/km

204

g/km

207

g/km

210

g/km

213

g/km

216

g/km

219

g/km

222

g/km

225

g/km

228

g/km

231

g/km

234

g/km

237

g/km

240

g/km

243

g/km

246

g/km

249

g/km

New company car sales by CO2 emission2012 - 1 diesel

Bijtelling




-

2.000

4.000

6.000

8.000

10.000

12.000

0 g/

km

86 g

/km

89 g

/km

93 g

/km

96 g

/km

99 g

/km

102

g/km

105

g/km

108

g/km

111

g/km

114

g/km

117

g/km

120

g/km

123

g/km

126

g/km

129

g/km

132

g/km

135

g/km

138

g/km

141

g/km

144

g/km

147

g/km

150

g/km

153

g/km

156

g/km

159

g/km

162

g/km

165

g/km

168

g/km

171

g/km

174

g/km

177

g/km

180

g/km

183

g/km

186

g/km

189

g/km

192

g/km

195

g/km

198

g/km

201

g/km

204

g/km

207

g/km

210

g/km

213

g/km

216

g/km

219

g/km

222

g/km

225

g/km

228

g/km

231

g/km

234

g/km

237

g/km

240

g/km

243

g/km

246

g/km

249

g/km

New company car sales by CO2 emission2012 - 2 diesel

Bijtelling




3. Rapid decline of tax revenues

Bijtelling


1. Rapid downsizing of new lease cars


3. Rapid decline of tax revenues

4. “Winner takes all”

New company car registrations 2011 2012 2013

Renault Megane 3.842 15.091 4.192

Volkswagen Passat 4.498 3.162 303

Fiat Punto 3.533 841 77

Position RAI Vereniging on taxation (1)

Taxation should not be local but on an EU basisCurrently, the Netherlands is among the countries in the EU with the highest car taxation.

Automotive taxes should be efficient and should not cause unnecessary administrative burdens

Automotive taxes should have broad support in politics and society and should be easy to explain

Automotive taxes must be predictable and robust

In the long run, automotive taxes should be technology neutral

Position RAI Vereniging on taxation (2)

The current ‘greening’ of the BPM, annual road tax and ‘bijtelling’ has disproportional and undesirable effects on the car market. Small differences in CO2 emissions can have major consequences.

The different treatment of fuels in taxation delays the introduction of alternative fuels

The BPM, annual road tax and bijtelling are taxes based on the purchase or possession of the car. In the long run, taxation of the use of the car is the only 'sustainable' way of taxation.

Anders Betalen voor Mobiliteit (Introduction of a form of road tax) is RAI Vereniging’s solution for sustainable automotive taxation

Anders Betalen voor Mobiliteit

System of variable taxation

Based on the use of cars instead of ownership

Tariff per kilometre

Tariff differentiates by:

time

place

emission

Benefits:

better accessibility

cleaner environment

positive impuls on new car sales

Anders Betalen voor Mobiliteit

Critical factors for success

System should be simple and explicable

System must be future-proof

System must not cause major market distortions(new and used cars)

System should encourage replacement of older cars for new cars

System should take into account the development of alternative fuels and drive systems

Public opinion

Pro

The principle of paying for the use of the car, not ownership(‘the polluter pays’)

Contra

Distrust of government(‘car as cash cow’ and recent experiences with failed major infrastructure projects)

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