Tax breaks on green cars set to go because they are too successful

The tax breaks on energy-efficient cars are set to disappear because they are costing the treasury too much money, sources have told RTL news.

So many drivers have bought green cars such as the Ford Fiesta Econetic and Toyota Prius that the treasury has missed out in over €700m in sales tax alone, RTL says.
Ministers are due to discuss junior finance minister Frans Weekers’ plan to scrap the tax cuts next week.


At the moment people buying an energy efficient car don’t have to pay sales tax and pay less road tax – the monthly fee paid by all drivers. But Weekers wants to end the sales tax exemption in 2013 and the road tax break the year after, RTL says.
Very clean cars, such as electric vehicles, will remain free of road tax.
A spokesman for environmental group Milieudefensie told news agency ANP the minister’s decision is ‘bizarre’. The cabinet has already scrapped plans to introduce road pricing, is cutting spending on public transport and building new roads, he said. The tax breaks are the only successful measure left to reduce CO2, he said.
A spokesman for the Bovag car traders organisation said he thought it unlikely that the tax breaks would go and that the industry had no indication such a move was in the making.

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