France plans gas-guzzling car tax
October 9, 2020 - France is planning big tax hikes on high-polluting cars, with those emitting more than 225 grams of carbon dioxide per kilometre taxed at a rate of €40,000 next year, rising to €50,000 in 2022.
The government in Europe’s second-largest auto market after Germany is planning to double the “malus” -- or penalty -- consumers must pay based on cars’ carbon-dioxide emissions.
The draft finance bill for 2021 weaving its way through France’s parliament may force wealthy car buyers to reconsider purchases of supercar marques.
France’s law would add to pressure put on the auto industry by the European Union’s 2030 Climate Target Plan, which calls for a reduction of CO2 emissions by 55 per cent from 1990 levels, up from the previously planned 40 per cent.
While other countries in the EU apply levies on cars relative to their CO2 emissions, no nation charges as much as France’s current maximum levy of €20,000, according to the European Automobile Manufacturers’ Association (ACEA).
Among models that would be subject to the full tax are the Lamborghini Urus and Aventador, which emits 499 grams/km of CO2. But if your willing to shell out €355,000 for a supercar that accelerates from 0-100km/h in 2.9 seconds -- and goes on to reach 350km/h -- a one-off penalty of €50,000 for the privilege may seem reasonable.
Other models attracting the eye-watering one-off levy include Ferrari’s Portofino, Rolls-Royce’s Ghost and Cullinan, Bentley’s Bentayga and Mercedes’s AMG and G-Class cars.
Motor vehicle taxation, including carbon levies, brings in €440.4 billion for governments in the EU and UK. Germany and France have the highest revenues with €93.4 billion and €83.9 billion respectively, ACEA reports, followed by Italy at €76.3 billion and the UK at €54.1 billion.