Benefit-In-Kind (BiK) tax on all-electric cars to gradually increase to 22%
The Netherlands, one of the biggest plug-in markets in Europe, is going to gradually decrease the incentive for all-electric cars.
Recently, the Dutch government announced the planned increase of the benefit-in-kind (BiK) tax to push BEVs to the standard level of 22% by 2026.
BiK for BEVs:
Higher BiK means that the popular company car — used by employees but also for private purposes — will be gradually taxed higher.
As we already saw in case of the premium models during the switch from 2018 to 2019, sales of BEVs are expected to significantly increase in the fall of 2019 and decrease in early 2020. A similar situation will play out multiple times in the future until the incentive totally disappears and stabilizes.
The planned increase for a car that costs €50,000:
- BiK in 2019: €2,000
- BiK in 2020: €4,700
- BiK in 2021: €7,000
- BiK in 2022: €7,000
The planned increase for a car that costs €40,000:
- BiK in 2019: €1,600
- BiK in 2020: €3,200
- BiK in 2021: €4,800
- BiK in 2022: €6,400
The planned increase for a car that costs €30,000:
- BiK in 2019: €1,200
- BiK in 2020: €2,400
- BiK in 2021: €3,600
- BiK in 2022: €4,800
Hat Tip to Benz!!!
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