Thursday, October 13, 2016

The government sounded the death knell of the rule of diesel in France – The Point

Already in loss of speed, the diesel cars are expected to lose their status of favorites of the French with the government’s decision to put gasoline on an equal footing with the diesel for professional fleets, half of all new car sales.

The companies will be able to deduct 80% of the VAT applied on the gasoline, as is currently the case for diesel fuel, explained Thursday the minister of Energy, Ségolène Royal, evoking on France 2 a measure that will be a progressive “in two years”.

“We’re not going to remove a benefit to the diesel, to take account of the place of the diesel industry (in France, editor’s note), to give him the time of the switch to clean transport, but there is no reason that gasoline has a disadvantage”, she said.

The first step of this fiscal rebalancing will be effective on the 1st of January, has been provided to the ministry of Energy. Its cost to the public purse has not been specified.

This announcement comes a day after the submission of a parliamentary report that, in the name of “technological neutrality and tax”, advocated a “gradual abolition of all the tax benefits to diesel in five years, including for company vehicles”.

An amendment to the finance bill 2017 that provides for the progressive alignment, in five years and not two, of the deductibility of the two fuels has been voted in on Wednesday.

In its report, the parliamentary mission was created in the wake of the scandal at Volkswagen took the view that, despite progress, “undeniable” in the cleanup, “clean diesel did not exist”.

diesel is by far the leading fuel sold in France, where it has enjoyed for a long time many tax benefits. The government has started since 2015 as a rebalancing of its taxation.

After reaching a peak of 77.3% in 2008, the share of diesel in the registrations of new passenger cars has decreased in recent years: it fell to 57.2% in 2015 and amounted to 52.5% since the start of 2016.

- benefits -

The automobile market in French is divided roughly equally between businesses and individuals. “If it is still above 50% in registrations in total, this is because the companies buy almost exclusively diesel because they are encouraged fiscally,” said Flavien Neuvy, director of the Observatoire Cetelem automobile.

“The announcement that has just been made (…) will accelerate the decline of the diesel, it will pass very quickly under the 50%”, does it, then it already takes a lot to roll to absorb the use the purchase of a diesel car more costly than a petrol equivalent model: 20,000 km per year at least, while the average in France is 12,000 km.

The association Diéséliste of France stressed have defended this “rebalancing, ( … ), which will enable entrepreneurs, craftsmen, etc to be able to tailor the purchase to their company car, according to the use that they make,” while ensuring that “diesel will still be the best compromise for the great all-rounders”.

the acceleration of The schedule announced by Ms. Royal does not correspond to the wishes of the PSA group (Peugeot, Citroën and DS). It is “in favour of a neutral tax-gasoline-diesel in a minimum of five years”, according to a spokeswoman.

Even the sound of a bell on the side of the national union of car rental companies in long-term (SNLVLD), which supports a timetable in five years “to allow manufacturers to align smoothly” to the new fiscal context, indicated to the AFP, its general secretary, Anne-Claire Forel.

the previous day, The trade union FO of PSA has been estimated that a hunt “diesel” threaten “to impact severely on the job” in the automotive industry and in particular the PSA, where “the 18,000 european jobs depend on it” with this type of engine.

diesel vehicles still keep as trump their fuel consumption -and therefore CO2 emissions – lower than that of gasoline-equivalent category. So, they are benefited by the tax on company cars (TVS) calculated on the fiscal power as well as by the system of “bonus-malus “green” purchase.

the evolution of The sales will be reflected in the composition of the rolling stock. January 1, 2016, 19.9 million diesel cars were registered in france, 62.2% of the park.




13/10/2016 16:44:08 – Paris, 13 oct 2016 (AFP) – © 2016 AFP


No comments:

Post a Comment