Eric Tipan / Johannes Kevin Go | December 02, 2014 18:22
Plans to reduce tax incentive on diesel-powered vehicles
France is calling diesel cars dirty. It aims to improve air quality by announcing plans to slowly eliminate diesel-powered vehicles in the passenger vehicle sector and the implementation of a vehicle pollution rating by next year.
"In France, we have long favored the diesel engine. This was a mistake, and we will progressively undo that, intelligently and pragmatically," said Prime Minister Manuel Valls.
About 80-percent of all passenger vehicles in France are diesel powered and the new pollution rating system will allow to government to ban vehicles with the dirtiest emission in urban areas of the country.
A new taxation scheme is also set to take effect to curb the public’s tendency towards buying vehicles with diesel engines by reducing incentives for the latter.
Diesel fuel will also receive an extra 2 euro cents per liter through the TICPE excise tax.
To kick start the program, French motorists trading up from a diesel-powered vehicle to an electric vehicle will be given a $13,500 incentive.