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18 October 2024

Flemish coalition agreement: EVs will also have to pay registration and road tax

The new Flemish coalition agreement introduces several measures that will impact motorists. The 30 km/h zones will be expanded, but there will be no further tightening of low-emission zones (LEZ). The most striking change, however, is that owners of electric vehicles (EVs) will also have to pay the registration tax (BIV) and annual road tax.

Overview

After months of negotiations, cd&v, N-VA, and Vooruit have reached an agreement to form a new Flemish government. The ministers of the Diependaele I administration have now been sworn in at the Flemish Parliament. The coalition agreement, spanning over 200 pages, contains many measures affecting motorists, including the introduction of the BIV and annual road tax for electric vehicles.

Until now, those purchasing an electric car in Flanders were exempt from paying registration and annual road taxes. These exemptions, intended to promote the adoption of electric vehicles, are being scrapped. The new Flemish government argues that the rapid greening of the vehicle fleet means that financial support for zero-emission vehicles is no longer justified. Additionally, these exemptions are eroding revenues, and electric vehicles, like those powered by fossil fuels, also make use of public roads.

What if you already own an electric vehicle?

Good news for those who already own an electric vehicle: they will be exempt from the new measures and will not have to pay the annual road tax. This decision is justified by the argument that “citizens’ previous choices will be respected.”

How much will you have to pay?

The exact amounts new electric vehicle owners will have to pay are not yet clear. However, it is expected that the registration and annual road taxes for electric vehicles will be lower than those for combustion engine vehicles, including hybrids. Furthermore, the Flemish government promises to reduce the total cost of ownership (TCO) for electric cars by making electricity cheaper than fossil fuels.

What will happen to the Flemish EV premium?

The new Flemish government will also end the EV premium, which is currently offered for the purchase of new or second-hand electric cars (€5,000 and €3,000 respectively). This will happen as soon as legally possible, potentially before the end of the year. However, those who have already applied for the premium will still be entitled to it under the current rules. Acting quickly is therefore advised.

Charging plazas instead of charging points

Another key measure in the coalition agreement is the revision of the strategy for public charging infrastructure. The current policy for installing charging points is often at odds with both spatial planning and local residents. In response, the government plans to focus more on “smart charging plazas” in the future. There will also be efforts to create a legal framework for bidirectional charging, where electric vehicles can supply power back to homes.