{"id":60217,"date":"2025-05-19T03:39:22","date_gmt":"2025-05-19T07:39:22","guid":{"rendered":"https:\/\/theicct.org\/?p=60217"},"modified":"2025-05-19T04:05:45","modified_gmt":"2025-05-19T08:05:45","slug":"belgiums-tax-incentives-drive-electric-vehicles-in-corporate-fleets-may25","status":"publish","type":"post","link":"https:\/\/theicct.org\/belgiums-tax-incentives-drive-electric-vehicles-in-corporate-fleets-may25\/","title":{"rendered":"Belgium\u2019s tax incentives drive electric vehicles in corporate fleets"},"content":{"rendered":"[et_pb_section fb_built=”1″ specialty=”on” _builder_version=”4.27.4″ _module_preset=”default” custom_padding=”0px|||||” global_colors_info=”{}”][et_pb_column type=”3_4″ specialty_columns=”3″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_row_inner _builder_version=”4.22.1″ _module_preset=”default” custom_margin=”|||-80px|false|false” custom_margin_tablet=”|||0px|false|false” custom_margin_phone=”|||0px|false|false” custom_margin_last_edited=”on|phone” global_colors_info=”{}”][et_pb_column_inner saved_specialty_column_type=”3_4″ _builder_version=”4.22.1″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” text_text_color=”#36424A” text_line_height=”1.8em” custom_margin=”||14px|||” global_colors_info=”{}”]\n

There has been a remarkable rise in new battery electric vehicle (BEV) registrations in Belgium<\/a> over the last few years, with nearly 128,000 units registered in 2024, a 37% increase over the previous year. The growth between 2022 and 2023 was even more impressive, as new registrations grew by 148% (Figure 1). This case highlights how progressive, targeted government policies can help grow the BEV market. Let\u2019s dive into it.<\/p>\n[\/et_pb_text][et_pb_text admin_label=”Caption” _builder_version=”4.27.4″ _module_preset=”default” text_font_size=”16px” custom_margin=”40px||20px||false|false” global_colors_info=”{}”]\n

Figure 1<\/strong>. Total new registrations of battery electric cars by year in Belgium<\/p>\n[\/et_pb_text][et_pb_image src=”https:\/\/theicct.org\/wp-content\/uploads\/2025\/04\/ID-343-Fig01.png” title_text=”ID 343 Fig01″ show_bottom_space=”off” _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” text_font_size=”16px” custom_margin=”25px||||false|false” global_colors_info=”{}”]\n

S<\/span>ource<\/span>s<\/span><\/span>: <\/span><\/span>ACEA<\/span><\/span><\/a> and<\/span> the <\/span><\/span>E<\/span>uropean <\/span>A<\/span>lternative <\/span>F<\/span>uels <\/span>O<\/span>bservatory<\/span><\/span><\/a>\u00a0<\/span><\/span>\u00a0<\/span><\/em><\/p>\n[\/et_pb_text][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” text_text_color=”#36424A” text_line_height=”1.8em” custom_margin=”-11px||14px|||” global_colors_info=”{}”]\n

In 2024, more than one in four new passenger cars<\/a> registered in Belgium was a BEV (28%). This percentage was significantly higher than in other key European markets, including the United Kingdom (20%), France (17%), and Germany (14%), as shown in Table 1. From 2023 to 2024, Belgium recorded the largest growth in BEV shares among these markets, with an increase of almost 9 percentage points.<\/p>\n[\/et_pb_text][et_pb_text admin_label=”Table 1″ _builder_version=”4.27.4″ _module_preset=”default” custom_margin=”||3px|||” custom_padding=”||19px|||” global_colors_info=”{}”]\n

Table 1.<\/strong> Shares of battery electric cars in new registrations in key markets\u00a0<\/span>\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n\n
\u00a0<\/span><\/td>\n2024<\/b>\u00a0<\/span><\/td>\n2023<\/b>\u00a0<\/span><\/td>\nPercentage point\u00a0change 2024 vs. 2023<\/b>\u00a0<\/span><\/td>\n<\/tr>\n
Belgium<\/span><\/b>\u00a0<\/span><\/td>\n28%<\/span>\u00a0<\/span><\/td>\n20%<\/span>\u00a0<\/span><\/td>\n+8.9<\/span>\u00a0<\/span><\/td>\n<\/tr>\n
United Kingdom<\/span><\/b>\u00a0<\/span><\/td>\n20%<\/span>\u00a0<\/span><\/td>\n17%<\/span>\u00a0<\/span><\/td>\n+3.0<\/span>\u00a0<\/span><\/td>\n<\/tr>\n
France<\/span><\/b>\u00a0<\/span><\/td>\n17%<\/span>\u00a0<\/span><\/td>\n17%<\/span>\u00a0<\/span><\/td>\n+0.1<\/span>\u00a0<\/span><\/td>\n<\/tr>\n
Germany<\/span><\/b>\u00a0<\/span><\/td>\n14%<\/span>\u00a0<\/span><\/td>\n18%<\/span>\u00a0<\/span><\/td>\n-4.9<\/span>\u00a0<\/span><\/td>\n<\/tr>\n
Spain<\/span><\/b>\u00a0<\/span><\/td>\n6%<\/span>\u00a0<\/span><\/td>\n5%<\/span>\u00a0<\/span><\/td>\n+0.2<\/span>\u00a0<\/span><\/td>\n<\/tr>\n
Italy<\/span><\/b>\u00a0<\/span><\/td>\n4%<\/span>\u00a0<\/span><\/td>\n4%<\/span>\u00a0<\/span><\/td>\n0.0<\/span>\u00a0<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Source<\/span><\/i>: <\/span>ACEA<\/span><\/a>\u00a0<\/span>\u00a0<\/span><\/p>\n[\/et_pb_text][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” text_line_height=”1.8em” global_colors_info=”{}”]\n

Companies<\/a> are vital to these changes. In 2024, company cars accounted for 62% of the over 448,000 new passenger car registrations in Belgium; that\u2019s about 276,000 cars, 40% of them BEVs. In comparison, private individuals registered around 172,000 passenger cars, just 10% of them BEVs. Of the almost 128,000 new BEVs registered in 2024, 87% were by companies. Additionally, by the fourth quarter of 2024<\/a>, there were nearly 74,000 charging points accessible to the public in Belgium, a 66% jump over the same quarter the previous year.<\/p>\n

This isn\u2019t surprising when you consider that a key piece of legislation<\/a> implemented in Belgium in December 2021 encouraged the uptake of zero-emission vehicles in company fleets. One part of the story in Belgium involves tax deductions for company cars. This approach is gradually discouraging<\/a> the acquisition of traditional internal combustion engine vehicles (ICEVs) and plug-in-hybrid vehicles (PHEVs) while offering benefits for BEVs and fuel-cell electric vehicles (FCEVs). For ICEVs purchased, leased, or rented by companies between July 2023 and December 2025, the tax deduction will drop from a maximum of 100% until end 2024 to 0% by January 2028 (Table 2). On the other hand, BEVs and FCEVs bought or leased until December 2026 will still benefit from a full 100% tax deduction; starting January 2027, deductible rates on these will also decrease to a maximum of 67.5% by 2031.<\/p>\n[\/et_pb_text][et_pb_text admin_label=”table 2″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”]Table 2<\/strong>. Tax deductibility for company cars in Belgium by fuel type (status: April 2025)[\/et_pb_text][et_pb_image src=”https:\/\/theicct.org\/wp-content\/uploads\/2025\/04\/ID-343-\u2013-Belgium-fleets_fordesign_Table-2-e1745263172190.png” title_text=”ID 343 \u2013 Belgium fleets_fordesign_Table 2″ show_bottom_space=”off” _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_image][et_pb_text admin_label=”table 2″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”]LPG = liquefied petroleum gas; CNG = compressed natural gas[\/et_pb_text][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” text_line_height=”1.8em” global_colors_info=”{}”]\n

The second part of the story is the private use of a company car by an employee. If an employee has the permission by his employer to use a company car for personal purposes, this is a taxable benefit. Consequently, it will be treated as part of an employee\u2019s income and taxed accordingly. The private use of a company car by an employee is a common practice in Europe. In Belgium, the benefit in kind (BIK) is calculated based on factors like car catalogue value, fuel type, carbon dioxide (CO2<\/sub>) emissions, and registration date. The rates for BEVs and FCEVs have remained stable, while CO2<\/sub> emission rates and minimum benefit amounts for ICEVs have become stricter<\/a> over the past decade. The solidarity contribution, also known as the CO2<\/sub> contribution, is the employer’s obligation; this is a monthly charge based on the vehicle\u2019s CO2<\/sub> emissions, fuel type, and an indexation coefficient. Since July 2023, an \u201cincrease coefficient multiplier\u201d has been added for ICEVs. For example, in 2024, the yearly solidarity contribution for a diesel car with CO2<\/sub> emissions of 129 g\/km exceeded \u20ac1,900, whereas for a BEV it was less than \u20ac400.<\/p>\n

Figure 2 shows selected policies and monthly shares of new BEV registrations beginning in January 2022. While there are fluctuations among the months, the policies aimed at companies appear to have contributed to a rise in BEV adoption when considering the yearly averages.<\/p>\n[\/et_pb_text][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”]\n

Figure 2.<\/strong> Monthly BEV shares in new passenger car registrations in Belgium and selected policy measures<\/p>\n[\/et_pb_text][et_pb_image src=”https:\/\/theicct.org\/wp-content\/uploads\/2025\/04\/ID-343-Fig02.png” title_text=”ID 343 Fig02″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” text_line_height=”1.8em” global_colors_info=”{}”]The Belgian case highlights that progressive and targeted government policies that both promote BEVs and discourage ICEVs can lead to a notable increase in new BEV registrations. It also illustrates the positive role that company cars can play in increasing the demand for electric vehicles and pulling a market toward faster electrification. [\/et_pb_text][\/et_pb_column_inner][\/et_pb_row_inner][\/et_pb_column][et_pb_column type=”1_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Title” module_id=”policedepartment” _builder_version=”4.22.1″ _module_preset=”680e9250-5983-47d2-b125-d1c0a97feb17″ text_text_color=”#007A94″ header_text_color=”#007A94″ custom_margin=”||||false|false” global_colors_info=”{}”]\n

Author<\/strong><\/span><\/h6>\n[\/et_pb_text][et_pb_text admin_label=”Author” _builder_version=”4.27.4″ _module_preset=”default” text_text_color=”#36424A” header_text_color=”#36424A” custom_margin=”||||false|false” custom_padding=”||14px||false|false” global_colors_info=”{}”]\"\"<\/strong><\/span><\/a><\/p>\n

Sandra Wappelhorst <\/strong><\/span>
Research Lead<\/em><\/span><\/p>\n[\/et_pb_text][et_pb_divider color=”#36424A” divider_weight=”2px” _builder_version=”4.27.4″ _module_preset=”default” custom_margin=”||||false|false” custom_padding=”||||false|false” global_colors_info=”{}”][\/et_pb_divider][et_pb_text admin_label=”Title” module_id=”policedepartment” _builder_version=”4.27.4″ _module_preset=”680e9250-5983-47d2-b125-d1c0a97feb17″ text_text_color=”#007A94″ header_text_color=”#007A94″ custom_margin=”-15px||||false|false” global_colors_info=”{}”]\n

Related Reading<\/strong><\/span><\/h6>\n[\/et_pb_text][et_pb_image src=”https:\/\/theicct.org\/wp-content\/uploads\/2024\/09\/AdobeStock_279595729-scaled.jpeg” title_text=”Closeup asian Technician hand is charging the electric car or EV in service center for maintainance, Eco-friendly alternative energy concept” _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” custom_padding=”||||false|false” global_colors_info=”{}”]\n

European Market Monitor: Cars and vans 2024<\/a><\/strong><\/p>\n

European market monitor for cars and vans offers data on new registrations, charging infrastructure, and estimation of CO2<\/sub> emission targets compliance by manufacturers in 2024.<\/p>\n[\/et_pb_text][et_pb_divider color=”#36424A” divider_weight=”2px” _builder_version=”4.27.4″ _module_preset=”default” custom_margin=”||||false|false” global_colors_info=”{}”][\/et_pb_divider][et_pb_code admin_label=”blog post meta shortcode” _builder_version=”4.22.2″ _module_preset=”default” custom_margin=”-30px||||false|false” custom_margin_tablet=”||||false|false” custom_margin_phone=”||||false|false” custom_margin_last_edited=”on|phone” global_module=”27472″ global_colors_info=”{}”]