Cheraw Chronicle

Complete News World

The advent of electric cars leaves a billion-dollar hole in the budget

The advent of electric cars leaves a billion-dollar hole in the budget

The number of electric cars in our country is expected to increase sevenfold by the end of this decade, from 270,000 at the end of last year to 2 million in 2030. Two independent studies conducted by consulting firm EY and Transport & Mobility Leuven (TML) show that The millions of cars that will no longer use gasoline or diesel as fuel by then will result in a reduction in tax and excise revenues for the federal government of 1.4 to 1.5 billion euros. The federal government now generates approximately €8 billion a year from fuel taxes.

160 million less income this year

This year alone, revenues will be €160 million lower than in 2022, according to EY calculations. The increase in VAT revenue due to increased electricity use has already been taken into account. “Governments in Belgium must urgently review current tax mechanisms,” EY partner Hendrik Sirois says in the paper. “If this does not happen, the risk of ill-considered and inconsistent action is high.” Possible measures include increasing the tax (BIV) when purchasing a car, introducing a mandatory photo for all cars or increasing the tax on electricity to a kilometer fee.

See also  ChatGPT CEO: “A breakthrough is needed for the future of AI” | Multimedia