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New Bonus and Tax Rates for Vehicle Emissions

Thursday 01 April 2010

A tax bonus is available for buying a new low polluting vehicle in 2010, but penalties are payable for those vehicles emitting high levels of carbon dioxide.

Introduced in January 2008 the system of ‘bonus-malus’ is one of the key measures the French government is using to bring down carbon emissions.
 
This Latin term literally means ‘good-bad’, with a price reduction granted on the purchase of new low polluting cars, whilst a price penalty applies to those emitting high levels of carbon dioxide.
 
Since its introduction, the government has been tightening the thresholds for which either a bonus or a penalty applies.
 
For 2010 no bonus is available if the CO² emissions are higher than 125 CO²/ km, while a penalty will apply if the emissions are 156 CO²/km or greater.
 
Accordingly, between 126 CO²/ km and 155 CO²/km neither a bonus nor a penalty apply.

As can be seen from the following graphs, the lower the CO² emissions the greater the bonus, and the higher they are, the more you will pay by way of a penalty on the purchase price.
 
The standards only apply to the purchase of new cars, at the time of purchase.
 
The scheme seems to be working, as since it was introduced the sale of low emitting cars has accelerated.
 
The average level of emission from new cars has also gone down from 149g CO² /km in late 2007 to 133g CO²/km in August 2009. The average decrease was 1.5 g / km CO2 per year in previous years.
 
Eco Penalty

CO² Emission Rate
(Grams/Km)


Tax Amount

2010 2011 2012
≤150 0 0 0
>150≤155 0 200 200
>155≤160 200 750 750
>160≤165 750 750 750
>165≤190 750 750 750
>190≤195 750 1 600 1 600
>195≤200 1 600 1 600 1 600
>200≤240 1 600 1 600 1 600
>240≤245 1 600 2 600 2 600
>245≤250 2 600 2 600 2 600

For any purchased vehicle discharging no more than 125 grams of CO²/km, the eco price bonus is as follow :

Eco Bonus

CO² Emission Rate
(Grams/Km)


Amount

2010 2011 2012
≤60 5 000 5 000 5 000
>60≤90 1 000 1 000 1 000
>90≤95 1 000 1 000 700
>95≤100 700 700 700
>100≤105 700 700 700
>105≤110 700 700 700
>110≤115 700 700 200
>115≤120 200 200 200
>120≤125 200 200 0
>125≤130 0 0 0


Scrapping Bonus

In addition to the tax and bonus arrangements for the purchase of a new car, a scrapping bonus for the disposable of an old vehicle is also payable, against the cost of the purchase of a new car.

The bonus is payable on condition that the vehicle being scrapped is at least 10 years old, and that the carbon emission output for the new car being purchased is no greater than 155 CO² /km.

The level of the bonus depends on when the new car was ordered, and when you were finally billed for the car. You need to speak to the car dealer to obtain the full details.

However, for a new car ordered between 1st January 2010 and 30th June 2010, the amount of the bonus until the end of September is €700, reducing to €500 if the bill is received between 1st October 2010 and 31st March 2011.

The level of the scrapping bonus and the permitted level of emissions for the new car are reducing at a fairly fast pace, mainly because it seems to have been far more successful than the government anticipated!

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