‘Cash for car won’t make it before January 1st’
The mobility budget, the so called ‘cash for car’ to replace the ‘salary car’ in Belgium, won’t make it for the beginning of 2018 as planned. Government sources admit it will be impossible to imply in time with the remarks State’s Council made and a number of the 50 measures proposed in the ‘summer agreement’ have priority, is heard.
Not for everyone
One of the main drawbacks according to the State’s Council is that part of the ‘cash’, the amount of extra wage an employee can get in exchange of his company car, is taxed differently than extra money for somebody not entitled to a company car. Other drawback is that the measure isn’t linked at an environmental durable policy.
Apart from the State’s Council, numerous organizations had remarks on the ‘cash for car’ proposal, not at least the car leasing sector itself and employees’ and employer’s organizations, but also the Planning Bureau or consulting analysts like KPMG. According to newspaper Le Soir in an earlier article the measure would be ‘only a good deal for the boss ‘.
Few weeks before the end of the year the Belgian federal government sees itself caught into a ‘traffic jam’ of turning the new measures that are agreed the past few months, into law proposals that can be voted in parliament before the end of the year.
Some of these dossiers are the reform of the corporate tax for companies, the proposal to let people earn 6.000 euro per year tax free by doing odd jobs for the neighbours or the ‘cash for car’ measure.
“I won’t tell you its the Playa del Sol and everything is running smoothly”, a government source told Le Soir newspaper. “But on the 50 measures announced in July, there are one some we have to do some arbitration on. But most balances are defined. The most difficult part is behind us.”
Impossible to vote all new laws
But nobody believes it still is possible to have all laws voted before the end of the year. Choices will have to be made and several sources indicate that the ‘mobility budget’ or ‘cash for car’ will be the first dossier to be posponed for an undefined period of time. The corporate tax remains the governments’ priority number one.