ING: Uncertainty over motor vehicle tax inhibits electric car sales

ING

More and more people are looking forward to electric driving. In 2022, individuals still had a 45% share of electric car purchases, but by 2023 that trend has declined. It does not appear that this will change in 2024. ING points the finger at the lack of clarity around motor vehicle taxes as one of the culprits.

Motor vehicle tax

Currently, electric cars still enjoy a tax exemption. Unfortunately, the party is over starting in 2026, and that’s going to hurt the wallets of electric car enthusiasts. They then have to pay some 200-500 euros more MRB annually than gasoline drivers, which amounts to some 60% additional cost.

Doubts

In addition, maintaining the excise tax rebate on gasoline does not contribute to the switch to electric driving by 2024. Current policy in the Netherlands assumes that electrification will continue on its own from 2025, but there are doubts that this will actually happen. For individuals, according to ING, it is currently attractive to continue driving their gasoline cars for a while.