Monday 19 April 2021

Electric car sales plummet this year, as company car tax rises

Photo: DutchNews.nl

The sale of electric cars almost halved in the first three months of this year, following changes in the tax rules for company cars, car association RAI has told BNR radio.

In total, 4,545 electric cars were sold in the first three months of the year, down 48% on the same period in 2020.

The downturn takes the share of electric cars in the national fleet to just 5.6%, down from 8.5% a year earlier.

In 2020, company car drivers had to pay income tax on 8% of the value of cheaper electric cars, but that has gone up to 12% this year.  For company cars worth over €40,000, the add-on is 22%, the same as for diesel-powered vehicles.

In 2019, when electric car sales soared, the tax was just 4%.

More plug-in hybrids were sold last year, and they now account for 9.5% of the car market. Hybrids are taxed at the same rate as diesel cars.

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