France introduces CO2 tax and rebate system for new cars
France and FInland have just introduced new systems of taxes and rebates for consumers that are based upon the CO2 emissions of the new cars that they buy. The systems will be similar to the ecoAuto program the Canadian government introduced earlier in 2007 where vehicles that have gasoline consumption beyond a certain threshold pay extra taxes while more economical vehicles get money back for their owners. In France beginning at the start of 2008, any vehicle that emits more than 160 g/km of carbon dioxide will be charged a tax ranging from €200 up to a maximum of €2,600 for vehicles that emit of 250 g/km. Cleaner cars that put out less than 130 g/km will get €200 back with rebates increasing to a maximum of €1,000 for cars like the Smart and VW Polo BlueMotion that produce less than 100 g/km. The Finns will base their tax rate on a percentage of the cars value and it will also be applied to used cars brought in from outside the country. [Source: TheTimes.co.za, Newsroom Finland, thanks to Karl-Uwe for the tip]
Reader Comments (Page 1 of 1)
Karl-Uwe Strunzen 11:26PM (12/05/2007)
The polo blue motion doesn't seem to be available in France or anywhere else yet, while, being a 2-seater, the Smart simply isn't practical.
If you get a car which emits less than 130, you still get a bonus of 700 euros (instead of 1000). In this class you have real-world 4-seater cars such as -
Citroen C1 C2 C3 C4, Peugeot 107 207 308, Fiat 500 Panda GrandePunto, Renault Twingo Clio Megane, and Toyota Aygo Yaris.
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Karl-Uwe Strunzen 11:49PM (12/05/2007)
I'd say this tax measure is more about penalizing those "idiots" (I'm only quoting Ken Livingstone, London Mayor) who still want SUVs despite all the damage they do...
http://news.bbc.co.uk/1/hi/uk_politics/3739495.stm
130 g also coincides with the new EU directive and there are plenty of cars in this class nowadays to choose from.
Spain and Finland have both opted for a tax which is based on CO2 and the car value. I'm not sure which is best, but the main thing here is that everyone is stinging those idiots with the ridiculous SUVs. The UK has an annual tax which is significantly higher for SUV, while Belgium and Cyprus also have CO2-based taxes. Italy will also have stronger measures in place from 1 January 2008.
The largest country in the EU (Germany, by population and car fleet) however seems to be the only country not to have done anything. The "plan" is to perhaps do something in 2009, but if the lobbyists have had their way so far, there's no reason to believe that anything will really change in 2009-
http://www.dw-world.de/dw/article/0,2144,2912535,00.html
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Karl-Uwe Strunzen 12:01AM (12/06/2007)
Citroen C1 C2 C3 C4, Peugeot 107 207 308, Fiat 500 Panda GrandePunto, Lancia Ypsilon Musa, Renault Twingo Clio Megane, and Toyota Aygo Yaris.
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Karl-Uwe Strunzen 12:46AM (12/06/2007)
I've found the Polo Bluemotion is for sale in the UK.
This thing sets you back 19000 euros (for this kind of car???) instead of the 12000 for the Citroen C1 and Fiat 500.. that's 60% more! a difference of 7000 euros while the bonus difference is 300 euros....even if the 1000-euro bonus were 5000 euros I'd still go for these other models....
What's more the Citroen C1, Fiat 500 and Peugeot 107 emit 109, 111 and 109 g CO2/km.
They now have good reason to come below the 100 barrier, and since they're almost there already, you can bet on even nicer things soon to come from these makes...
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Romain 7:43AM (12/06/2007)
You forgot to mention the 5000€ rebate for a car emitting less than 60gr/km.
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Karl-Uwe Strunzen 8:16AM (12/06/2007)
well for now the top bonus is 1000 euros. Combined with the cost of petrol in Europe, this is more than enough I'd say for the bonus (the French call this bonus-penalty scheme "bonus-malus").
Now that incentives are in place, no doubt it's just a matter of time before we see 60 gr/km (in Europe). To put one foot in front of the other though, the first priority now should be to get the monstrosities off the streets. I doubt 2600 euros is the highest penalty in Europe: Spain seems to easily top this with their 14.75% tax rate. In France they are currently looking at changing this scheme into an annuity. If they are going to have fixed rates perhaps the 2600 euros should be pumped up to 5000-8000 euros..(for now)
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Tim 8:42AM (12/06/2007)
Sales tax, property tax, gas tax, VAT tax and now C02 tax. I hope these people can still afford bread. Oh, that's taxed too....
Liberals & Democratic/Socialists Suck!
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Karl-Uwe Strunzen 9:06AM (12/06/2007)
I have to totally agree. All those commies running around in their Toyota Yaris cars are just jealous they don't have a wonderful VW Touareg like I have....
My 83000 euro Touareg emits 346 g CO2/km? This whole CO2 thing is a communist hoax if you ask me....I think everyone has a right to a full-sized car...
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Karl-Uwe Strunzen 9:31AM (12/06/2007)
Just to clarify, though, this "bonus-malus" isnt't really a CO2 tax at all. In 75% of cases, motorists in France will either see no difference or will receive a bonus. More specifically, for 45% there will be concerned with neither a bonus nor a penalty, while 30% will actually receive a bonus in cash.
Only in 25% of cases (such as my VW Toureg) will there be a penalty to pay. Since in in 75% of cases there is nothing to pay I don't think CO2 tax would be the right name. Perhaps "Idiot Tax" would fit the shoe a lot better....
Spain and Finland are also making efficient cars totally tax-free. As there currently aren't any tax -free cars this is, in the case of efficient cars, reducing taxes.
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Karl-Uwe Strunzen 6:27AM (12/08/2007)
Spain have jsut lost their top position in Europe!
Ireland announced yesterday their "Idiot Tax" of 36%.
http://www.autoindustry.co.uk/news/07-12-07_11
Italy should be detailing their "Idiot Tax" in the next few days.
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Karl-Uwe Strunzen 6:28AM (12/08/2007)
Spain have just lost their top position in Europe!
Ireland announced yesterday their "Idiot Tax" of 36% (which beats the Spanish 14.75%).
http://www.autoindustry.co.uk/news/07-12-07_11
Italy should be detailing their "Idiot Tax" in the next few days.
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