New Walloon agreement boosts electric vehicles with revised car tax

After lengthy negotiations, the Walloon government has reached an agreement on the tax on entry into service (BIV). This tax, levied once when a car is sold, for both new and used vehicles, will be revised from 2025. The amount of the tax is calculated based on several factors, such as the type of vehicle, its cylinder capacity and its CO2 emissions. The main goal of this agreement is to encourage Walloon citizens to purchase vehicles with lower emissions.

Calculation of tax for electric vehicles

Within this new agreement, there is a special focus on electric vehicles.  With the previous calculation, electric vehicles were often taxed higher because they are heavier than traditional cars. But now, using a special formula, they will receive a reduction in the GST. The formula is calculated as follows:

BIV= power x MTM* x coefficient

The MTM* represents the vehicle's mass in running order. The coefficient depends on vehicle power and fuel type. Specific coefficients apply to electric vehicles.

  • <120 kW = 0,09 

  • 120 - 160 kW = 0,18 

  • >160 kW = 0,26

These coefficients ensure that electric vehicles have a lower tax compared to combustion engine vehicles.  An electric Opel Mokka that now pays 61.50 euros in GST will have to pay about 50 euros from 2025. It seems like a small difference, but can have a big impact on the car's TCO.

Favoring electric and hybrid engines

The new agreement aims to encourage the choice of electric and hybrid cars. Due to the favorable coefficients applied in the calculation of the GFCF, electric vehicles and hybrid vehicles are rewarded. This means that the tax for these vehicles will be lower than for combustion engine vehicles. In this way, the Walloon government is showing their active commitment to the health of their citizens and the environment. 

Entry into force and application of the reform

The revised car tax will take effect July 1, 2025. It is important to note that this reform only applies to new registrations. This means that existing vehicles will not be affected by this new rule. Moreover, the Walloon government has stressed that it does not intend to penalize citizens who cannot afford a new vehicle. The BIV will decrease anyway according to the age of the vehicle; the older the vehicle, the less tax you will pay on it.

The Walloon government's new agreement takes an important step to promote electric vehicles and reduce CO2 emissions. The revised car tax, effective July 1, 2025, encourages the choice of electric and hybrid engines by applying more favorable tax rates. Electric vehicles benefit from lower taxes compared to internal combustion engine vehicles, making them more attractive to consumers. This reform provides a positive move toward cleaner and more sustainable mobility in Wallonia.

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