France announces plans to raise penalties and cut incentives in bonus-malus green car purchase scheme
Tue 01 November 2011
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The French Government has announced changes to its bonus-malus scheme which will mean a reduction in the purchase tax incentives for lower carbon cars and an increase in penalities for high-pollution vehicles from January next year.
France's bonus-malus scheme provides financial rewards for those who purchase or lease a new vehicle emitting less CO2 g/km whilst taxing more heavily polluting cars. A 'bonus' is paid to any French residents at first registration for the purchase or lease (with the option to buy or lease for a minimum of 2 years) a new vehicle if its CO2 emissions do not exceed 105 grams of CO2/km by 2012 (formerly 125 grams of CO2/km in 2010, 110 grams of CO2/km in 2011).
The incentives from 2012 will range from €300–5,000 with all but the highest range (> or = 50 g/km CO2) being reduced and with applications required to be submitted within 6 months of purchase. The Government will maintain the 2011 allocation of €2000 for hybrid and electric vehicles emitting less 110 grams of CO2/km or less.
Those purchasing models emitting between 191 and 230 g / km must pay a penalty of 2300 euros (1600 euros previously) whilst vehicle over 231 g/CO2 will attract a 3600 euros penalty, 1000 euros more than before. In addition, the annual penalty will be raised from 190g to 245g.
France's Prime Minister Francois Fillon had said in August that the scheme would be adjusted to ensure "a balanced budget" in 2012, as the Government claims the programme has lost 1.2 billion euros between 2008-2010.
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