Post by T&E

NEW RANKING: 🇩🇰 🇫🇷 Denmark and France are in the lead in a new ranking showing which countries are best at offering incentives to steer companies away from fossil-fuel cars. Company cars are key to unlocking Europe from oil imports, since they are driven twice as much as private cars and end up in the second-hand market, where they can keep on emitting CO2 for decades. However, three of the five largest EU markets – Germany, Spain and Poland – are on the lower end of the ranking due to their scarce incentives for companies to drive electric. A country qualifies as green when the tax gap for a company to register an EV instead of a fossil-fuel car exceeds the EV price premium, which stood at €10,650 in 2025. The reasoning behind this is that when taxes offset the upfront premium, the lower running costs of EVs can then make the business case for electrification. However, this is only the case for 9 EU countries. In the remaining two thirds of Member States, taxes are not steering companies towards EVs yet. The EU Commission proposed last December setting national electrification targets for the car fleets of large companies, proposing an EU-wide average of 45% of their new cars to be electric in 2030. It proposed Member States, not companies, be responsible to meet them. This is the right way forward, since Member States can make reforms to widen the tax gap between powertrains and increase the incentive for a company to register an EV. Belgium did so and it massively increased the EV registrations in the corporate channel to 54.2% in 2025 (from 8.8% in 2021) Without a powerful regulatory catalyst, progress does not happen. It’s time for the EU Council and EU Parliament to support electrification targets for large fleets. See more in our updated Good Tax Guide ➡️ https://lnkd.in/e9UTMcCw #companycars #cleancorporatevehicles