Saturday, October 22, 2016

Business : gasoline and diesel equal in 2021 – The Point

This is not a simple decision. By voting in a quasi-unanimously the extension of the essence of the tax advantage given to companies for the use of the diesel, the deputies sign a mini revolution. You should know that a car sold in France is a company and that because of this tax advantage, they are oriented almost exclusively to build up their parks on vehicles running on diesel. Goes for a truck or a van, but for many small cars operating in the coasting trade around the company, it is a non-sense.

The new provision will therefore repair finally this, under the recent pressure of the reality of the polluting emissions raised particularly by the case of Volkswagen. Before that, for decades, many are those who have raised the inequality of treatment between the two types of drives without touching any government.

The decision could have the effect of a storm, if, as claimed by some little industrial, it had been applicable in two years. In reality, it will be progressively to the fleet of professional vehicles, with a transition period of five years. Thus, in 2021, companies will be able to deduct 80 % of the VAT applied on the gasoline, as is currently the case for diesel, according to the amendment voted on the draft budget for 2017.

Five years to do well

The first step in this rebalancing tax will come into force in 2017, with a deductible of 10 %, to progressively reach 80 % in 2021 for passenger cars (and 100% for light commercial vehicles). The members have happily followed the conclusions of a parliamentary report that called for this alignment in five years to give time to the French industry, historically oriented towards the diesel, to adapt.

The minister of the Environment Ségolène Royal had, she spoke on October 13, an alignment in two years, but the secretary of State for the Budget Christian Eckert supported the amendment, “with the validation of the head of the government,” he said.

” It does not of production plants from one day to the next day “, argued the rapporteur general of the budget Valérie Rabault (PS) in response to the environmentalist Eva Sas and the socialist Christophe Castaner supporting the alignment in two years. People who have probably never seen a factory in their lives.

The diesel holds its arguments

the First question, the PSA group (Peugeot, Citroën and DS), world champion diesel, said he was ” in favour of a neutral tax-gasoline-diesel in a minimum of five years “, according to a spokesman. This will reshuffle the cards petrol-diesel, without negating those of the latter. It has a long-lasting better for the vehicles that roll a lot and the utilities.

The deductibility of 10 % will certainly not upset the things in the first year, but it will accelerate then, and probably begin to change the strategy of the managers of the park in three years. In fact, a gasoline vehicle is cheaper to buy and benefit at the pump diesel will be returned to what it always should have been : a lower consumption than gasoline.

Several members of parliament, as the socialist Delphine Batho, and ecologist Eric Alauzet have talked about a vote “historic” to the end of the preference in French for the diesel, after several failures in previous years. “For the first time, the French industry said that she doesn’t want to lead a rear-guard action on the maintenance of diesel in France “, welcomed Ms. Batho, who was the minister of Ecology, sustainable Development and Energy, June 2012 to July 2013.


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