Mobility budget – another legal initiative to reduce number of company cars in Belgium
Belgian parliament recently approved the so-called mobility budget. It allows employees to trade their company car for a budget to be spent on a more environmental-friendly car or sustainable transportation services. The mobility budget enjoys an advantageous social security and tax treatment and offers employees another alternative to their company car, in addition to the so-called cash for car arrangement that was introduced in 2018. These legal initiatives, together with greater investments in public transport strive to reduce the number of company cars in Belgium. Approximately 10% of all cars registered in Belgium are reportedly company cars. The automotive industry points out that company cars are less polluting compared to privately owned cars since they are renewed more often. ■