Skatteudvalget 2013-14 SAU Alm.del Bilag 11 Offentligt Automotive taxation in the Netherlands The effects of fiscal measures on passenger car sales in the Netherlands
RAI Vereniging Trade Association for the automotive industry in the Netherlands Since 1893 More than 500 members Passenger cars, light commercial vehicles, trucks, spare parts, garage-equipment, bicycles, motorcycles, mopeds, trailers, coaches etc.
The Dutch Car Park Background data Passenger car park 8,1 million vehicles Annual new car sales approximately 500,000 vehicles Average annual distance driven 13,317 km (petrol 10,877 km and diesel 23,806 km) Average new car price: 25,627 Petrol cars have dominant market share Passenger car park by fuel type Diesel 17,10% LPG 2,51% Hybrid 1,12% Electric 0,02% CNG 0,04% Biofuel 0,03% Hydrogen 0,00% Petrol 79,18%
Car related taxes in the Netherlands Various car related taxes: Motorrijtuigenbelasting (annual road tax) BTW (VAT, 21%) BPM (special vehicle purchase tax) Bijtelling (Benefits in kind, applicable for private use of company cars) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Price breakdown of passenger cars VAT; 13% VAT; 12% BPM; 16% BPM; 22% Net list price; 70% Net list price; 66% petrol diesel
BPM Since 1993 1993 2008: BPM is based on nett catalogue price of car 2006: introduction of bonus malus scheme for fuel efficient cars (with labelling) 2008: gradual conversion from list price to CO 2 emission as base for BPM 2013: BPM fully based on CO 2 emission
BPM Main effects of conversion from nett catalogue price based BPM to CO 2 emission based BPM 1. Rapid downsizing of new car sales, 100% 90% Market shares A & B fuel efficiency labels in new car sales 80% 70% 60% 50% 40% 30% 20% 10% A B 0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
BPM Main effects of conversion from nett catalogue price based BPM to CO 2 emission based BPM 1. Rapid downsizing of new car sales Market share of small cars in new car sales 100% 90% 80% 70% 60% 50% 40% 32% 28% 25% 23% 20% 21% 21% 18% 20% 21% 23% 20% 18% 20% 23% 24% 27% 25% 23% C Lower Family segment B City segment A Small segment 30% 20% 19% 20% 21% 23% 23% 21% 20% 23% 23% 23% 21% 10% 0% 11% 11% 10% 10% 8% 10% 9% 12% 12% 17% 20% 25% 26% 24% 23% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
BPM Main effects of conversion from nett catalogue price based BPM to CO 2 emission based BPM 1. Rapid downsizing of new car sales 2. Rapid decline of BPM tax revenues (2012 target 2.1 billion, realisation 1.7 billion) 3.500.000.000 BPM revenues versus car sales 600.000 3.000.000.000 2.500.000.000 2.000.000.000 1.500.000.000 1.000.000.000 500.000.000 500.000 400.000 300.000 200.000 100.000 BPM Car sales - 2008 2009 2010 2011 2012 2013 (forecast) -
BPM Dutch CO 2 emission policy more strict than European norm 140 BPM exemption CO2 emission in grammes/km 120 100 80 60 40 20 0 2012-1 2012-2 2013 2014 2015 Petrol 110 102 95 88 82 Diesel 95 91 88 85 82 European norm 130 130 130 130 130
BPM Petrol 2012-1 2012-2 2013 2014 2015 exempt from BPM 110 102 95 88 82 1 tariff group 111-180 103-159 96-140 89-124 83-110 2 tariff group 181-270 160-237 141-208 125-182 111-160 3 tariff group 271 238-242 209-229 183-203 161-180 4 tariff group 243 230 204 181 Diesel 2012-1 2012-2 2013 2014 2015 exempt from BPM 95 91 88 85 82 1 tariff group 96-155 92-143 89-131 86-120 83-110 2 tariff group 156-232 144-211 132-192 121-175 111-160 3 tariff group 233 212-225 193-215 176-197 161-180 4 tariff group 226 216 198 181 Tariff for every gram CO 2 per km 2012-1 2012-2 2013 2014 2015 1 tariff group 94 101 122 101 88 2 tariff group 280 121 145 121 106 3 tariff group 654 223 270 228 205 4 tariff group 559 539 456 411 2012-1 2012-2 2013 2014 2015 Diesel surcharge for every gram CO 2 per km > 70 gram 40,68 40,68 54,92 70,17 81,36
Bijtelling Bijtelling is a form of income tax The private use of a company car (> 500 km per year) is seen as a benefit in kind If the private use of the company car is limited to less than 500 km per year than there is no bijtelling 0%, 14%, 20% or 25% of the list price of the company car is to be added to the annual income Percentage of the bijtelling is based on the CO 2 emission of the company car
Bijtelling Company cars dominate the new car sales Approximately 60% of new car sales are company cars 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Market share company cars in new car sales 1999-2013
Bijtelling Main effects of conversion from nett catalogue price based Bijtelling to CO 2 emission based Bijtelling 1. Rapid downsizing of new company cars 100% 90% Market shares A & B fuel efficiency labels in new company cars 80% 70% B A 60% 50% 40% 30% 20% 10% 0% 2007 2008 2009 2010 2011 2012 2013
Bijtelling Main effects of conversion from nett catalogue price based Bijtelling to CO 2 emission based Bijtelling 1. Rapid downsizing of new company cars 100% 90% 80% 70% Market share of small cars in new company cars 60% 50% 40% 30% 20% 10% 0% 24% 29% 30% 35% 29% 32% 34% 32% 30% 26% 25% 26% 26% 23% 25% 16% 22% 17% 13% 11% 11% 11% 11% 11% 11% 12% 14% 15% 14% 12% 2% 3% 3% 2% 1% 2% 2% 3% 4% 6% 8% 14% 15% 10% 11% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 C Lower Family segment B City segment A Small segment
0 g/km 53 g/km 85 g/km 90 g/km 94 g/km 98 g/km 102 g/km 106 g/km 110 g/km 114 g/km 118 g/km 122 g/km 126 g/km 130 g/km 134 g/km 138 g/km 142 g/km 146 g/km 150 g/km 154 g/km 158 g/km 162 g/km 166 g/km 170 g/km 174 g/km 178 g/km 182 g/km 186 g/km 190 g/km 194 g/km 198 g/km 202 g/km 206 g/km 210 g/km 214 g/km 218 g/km 222 g/km 226 g/km 230 g/km 234 g/km 238 g/km 242 g/km 246 g/km 250 g/km 254 g/km 258 g/km 262 g/km 266 g/km 270 g/km 274 g/km 278 g/km 282 g/km 288 g/km 292 g/km 296 g/km Bijtelling Main effects of conversion from list price based Bijtelling to CO 2 emission based Bijtelling 1. Rapid downsizing of new company cars 2. Emission limits have major impact on company car sales 18.000 16.000 14.000 12.000 10.000 8.000 6.000 4.000 2.000 - New company car sales by CO 2 emission 2012-1 petrol
0 g/km 53 g/km 85 g/km 90 g/km 94 g/km 98 g/km 102 g/km 106 g/km 110 g/km 114 g/km 118 g/km 122 g/km 126 g/km 130 g/km 134 g/km 138 g/km 142 g/km 146 g/km 150 g/km 154 g/km 158 g/km 162 g/km 166 g/km 170 g/km 174 g/km 178 g/km 182 g/km 186 g/km 190 g/km 194 g/km 198 g/km 202 g/km 206 g/km 210 g/km 214 g/km 218 g/km 222 g/km 226 g/km 230 g/km 234 g/km 238 g/km 242 g/km 246 g/km 250 g/km 254 g/km 258 g/km 262 g/km 266 g/km 270 g/km 274 g/km 278 g/km 282 g/km 288 g/km 292 g/km 296 g/km Bijtelling Main effects of conversion from list price based Bijtelling to CO 2 emission based Bijtelling 1. Rapid downsizing of new company cars 2. Emission limits have major impact on company car sales 18.000 16.000 14.000 12.000 10.000 8.000 6.000 4.000 2.000 - New company car sales by CO 2 emission 2012-2 petrol
0 g/km 86 g/km 89 g/km 93 g/km 96 g/km 99 g/km 102 g/km 105 g/km 108 g/km 111 g/km 114 g/km 117 g/km 120 g/km 123 g/km 126 g/km 129 g/km 132 g/km 135 g/km 138 g/km 141 g/km 144 g/km 147 g/km 150 g/km 153 g/km 156 g/km 159 g/km 162 g/km 165 g/km 168 g/km 171 g/km 174 g/km 177 g/km 180 g/km 183 g/km 186 g/km 189 g/km 192 g/km 195 g/km 198 g/km 201 g/km 204 g/km 207 g/km 210 g/km 213 g/km 216 g/km 219 g/km 222 g/km 225 g/km 228 g/km 231 g/km 234 g/km 237 g/km 240 g/km 243 g/km 246 g/km 249 g/km Bijtelling Main effects of conversion from nett catalogue price based Bijtelling to CO 2 emission based Bijtelling 1. Rapid downsizing of new company cars 2. Emission limits have major impact on company car sales 12.000 New company car sales by CO 2 emission 2012-1 diesel 10.000 8.000 6.000 4.000 2.000 -
0 g/km 86 g/km 89 g/km 93 g/km 96 g/km 99 g/km 102 g/km 105 g/km 108 g/km 111 g/km 114 g/km 117 g/km 120 g/km 123 g/km 126 g/km 129 g/km 132 g/km 135 g/km 138 g/km 141 g/km 144 g/km 147 g/km 150 g/km 153 g/km 156 g/km 159 g/km 162 g/km 165 g/km 168 g/km 171 g/km 174 g/km 177 g/km 180 g/km 183 g/km 186 g/km 189 g/km 192 g/km 195 g/km 198 g/km 201 g/km 204 g/km 207 g/km 210 g/km 213 g/km 216 g/km 219 g/km 222 g/km 225 g/km 228 g/km 231 g/km 234 g/km 237 g/km 240 g/km 243 g/km 246 g/km 249 g/km Bijtelling Main effects of conversion from nett catalogue price based Bijtelling to CO 2 emission based Bijtelling 1. Rapid downsizing of new company cars 2. Emission limits have major impact on company car sales 12.000 New company car sales by CO 2 emission 2012-2 diesel 10.000 8.000 6.000 4.000 2.000 -
Bijtelling Main effects of conversion from nett catalogue price based Bijtelling to CO 2 emission based Bijtelling 1. Rapid downsizing of new company cars 2. Emission limits have major impact on company car sales 3. Rapid decline of tax revenues
Bijtelling Main effects of conversion from nett catalogue price based Bijtelling to CO 2 emission based Bijtelling 1. Rapid downsizing of new lease cars 2. Emission limits have major impact on company car sales 3. Rapid decline of tax revenues 4. Winner takes all New company car registrations 2011 2012 2013 Renault Megane 3.842 15.091 4.192 Volkswagen Passat 4.498 3.162 303 Fiat Punto 3.533 841 77
Position RAI Vereniging on taxation (1) Taxation should not be local but on an EU basis Currently, the Netherlands is among the countries in the EU with the highest car taxation. Automotive taxes should be efficient and should not cause unnecessary administrative burdens Automotive taxes should have broad support in politics and society and should be easy to explain Automotive taxes must be predictable and robust In the long run, automotive taxes should be technology neutral
Position RAI Vereniging on taxation (2) The current greening of the BPM, annual road tax and bijtelling has disproportional and undesirable effects on the car market. Small differences in CO 2 emissions can have major consequences. The different treatment of fuels in taxation delays the introduction of alternative fuels The BPM, annual road tax and bijtelling are taxes based on the purchase or possession of the car. In the long run, taxation of the use of the car is the only 'sustainable' way of taxation. Anders Betalen voor Mobiliteit (Introduction of a form of road tax) is RAI Vereniging s solution for sustainable automotive taxation
Anders Betalen voor Mobiliteit System of variable taxation Based on the use of cars instead of ownership Tariff per kilometre Tariff differentiates by: time place emission Benefits: better accessibility cleaner environment positive impuls on new car sales
Anders Betalen voor Mobiliteit Critical factors for success System should be simple and explicable System must be future-proof System must not cause major market distortions (new and used cars) System should encourage replacement of older cars for new cars System should take into account the development of alternative fuels and drive systems
Public opinion Pro The principle of paying for the use of the car, not ownership ( the polluter pays ) Contra Distrust of government ( car as cash cow and recent experiences with failed major infrastructure projects)