Tax on diesel to rise under reforms

THE favourable taxation of diesel is to be brought to an end over the next five years, the government has announced.

Starting from next year tax on diesel will rise one centime per litre in both 2016 and 2017, while the tax on petrol will be reduced by the same amount.

From 2017 onwards even bigger changes could be introduced if the government is to end the difference in taxation between the two fuels which is currently 20 centimes per litre.

The announcement was made yesterday by the Prime Minister’s office.

“Diesel has historically benefited from favourable financial treatment, with a level of tax nearly 20 centimes less per litre than petrol,” said a statement from the PM Manuel Valls.

“This gap has introduced a high number of diesel vehicles which has led to legitimate concerns of a number of French about the impact on air quality,” it added.

The expected extra tax as a result of the change will be funnelled towards a reduction in local taxation.

As well as a change in fuel taxation the government also has two schemes which can benefit people wishing to switch from a diesel car.

The Prime à la conversion offers €3,700 if you switch a diesel vehicle more than 15 years old to a new electric vehicle, or €2,500 for a new hybrid.

The diesel conversation bonus can be combined with two other general bonuses for buying a new electric or low fuel vehicle, with up to €6,500 or €10,000 possible.

Low-income households can also benefit from a bonus if they trade their old diesel car for a new or second-hand vehicle emitting less than 100g/km of CO². This is set to double from €500 to €1,000 as part of the new measures and concerns cars more than 10 years old.

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