Abstract

There were approximately 650 000 company cars in Belgium in 2016 of a total of 5 700 000 cars on the roads. It may be estimated that approximately 100 000 company cars enter, exit or are driven in the Brussels Region every day: they therefore undoubtedly have a significant impact on regional mobility. This article first attempts to describe the tax system for company cars along with the specificities of the cars concerned. Next, this synopsis describes the characteristics of the companies which provide these cars and the profile of the employees who use them. An analysis of the distances travelled by company cars and their impact on road traffic is conducted, as well as an assessment of the impact of the system on taxes and salaries. Finally, a brief analysis of the environmental impact of company cars is carried out concerning the production of greenhouse gases as well as the impact of emissions on human health. The challenges and debates related to company cars in Brussels and in Belgium are put into perspective at the end of the article.

Highlights

  • Comparative of company cars used by employees, leased cars, cars owned by a legal entity and private cars Company cars used by employees represent approximately 2/3 of the total number of company cars

  • As cars owned by a legal entity are on average heavier and more powerful than company cars used by employees, this probably means that the company cars used by company managers are of a higher range than those used by employees

  • With respect to private cars owned by people aged 25 to 60, company cars used by employees are far more recent, cover almost twice the number of kilometres each year, are heavier, more powerful, have bigger engines and much more often have diesel engines (93,5 % compared with 60,2 %)

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Summary

Definition and context

With respect to private cars owned by people aged 25 to 60, company cars used by employees are far more recent (average age of 2,3 years compared with 8,8 years), cover almost twice the number of kilometres each year, are heavier, more powerful, have bigger engines and much more often have diesel engines (93,5 % compared with 60,2 %). 14 These company cars are often associated with fuel cards, which employees use to pay for fuel for their professional and private travel; this encourages them to drive more In this case as well, there are no administrative data regarding the number of drivers of company cars who benefit from these cards. They are very widespread according to different sources: 89 % of company cars according to a HayGroup survey,13 88 % according to a SD Worx survey, approximately 90 % according to Castaigne et al [2009] and 76 % according to a survey conducted by Indigov consulting firm.

The tax system for company cars
Impact on employee taxes
Impact on employer taxes
Observations
Contributions of private sector employers towards journeys
Distribution of company cars according to sector of activity
Mobility of workers
More workers in Flanders and in peri-urban areas
Greater use of cars for home-work journeys
Distances between home and work noticeably longer on average
Annual distances travelled by company cars
Professional travel and company cars
Loss of tax revenue related to the company car system
Cost for the employer
Advantage for the employee
Loss of tax revenue
Observations on how the company car system works
Tax equity of the company car system
Comparison with the other means of transportation for home-work journeys
Summary indicator of environmental performance
Impact on human health
Global impact on climate change
Fragmented data which provide an incomplete picture
A costly and unfair system from a tax perspective
Source
Findings
27. Source
Full Text
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