Decline in car sales, BPM revenue shows slight increase

Notwithstanding the 10 percent or so decline in passenger vehicle sales for the first half of 2019 compared with one year earlier, the BPM revenue has shown a slight increase, which the Junior Finance Minister has explained by pointing out that the cars having newly been admitted to the Dutch roads in 2019 have typically been heavier and pricier than had been the case in previous years. Carbon dioxide emissions for these new cars tend to turn out greater, which in turn tends to push up the BPM charge. The Junior Minister has affirmed that the switch in emission calculation methods has not affected BPM revenues.

Carbon dioxide emission levels calculated using the new test method will be the basis for levying private motor vehicle cum motorcycle tax in the Netherlands from the first of July 2020 onwards. The assurance that the overall BPM revenue is not to go up owing to the test method switch has prompted an adjustment – effective the first of July 2020 – of the BPM rates (ducth) and carbon dioxide band widths, in compensation of the greater carbon dioxide emission levels as per the new test method. The Junior Minister has pointed out that the adjustment of the table of rates is to be implemented using the average difference between carbon dioxide emission levels as per the old and the new method. This could result in the BPM charge turning out greater for some cars and smaller for others. The adjustments to the Private Motor Vehicle cum Motorcycle Tax Act are to be incorporated in the Miscellaneous Tax Measures Bill 2020, which is scheduled to be presented to the Lower House of the Dutch Parliament – as part of the annual Tax Plan – on Budget Day, which has traditionally been held (since the 1930s) on the third Tuesday in the month of September.

Also to read: Adjustment of private motor vehicle cum motorcycle tax as at first of July

Dutch version: Daling verkoop auto’s, BPM-opbrengst licht omhoog