Tax Breaks on Plug-In Vehicles Cost Netherlands $688 Million in 2013

APR 20 2014 BY ERIC LOVEDAY 17

Mitsubishi Outlander PHEV

Mitsubishi Outlander PHEV

While plug-in vehicle buyers benefit from various tax breaks offer around the world, treasury departments don’t.

Tesla Model S

Tesla Model S

It’s being reported that in the Netherlands, the generous plug-in vehicle purchase incentives that expired at the end of 2013 cost the Dutch treasury dearly.

Last year alone, the treasury department in the Netherland is estimated to have spent $687,550,000 USD in tax breaks for the 22,000 eligible vehicle purchased in 2013.

This figure is way higher than anticipated due to a late-year run on plug-in vehicles.

As Dutch News reports:

“In December alone, more than 2,000 Volvo V60’s, almost 5,000 Mitsubishi Outlanders, over 700 Opel Amperas and 577 fully electric Teslas were bought as owners tried to beat the tax change deadline.”

Those incentives are now gone and the plug-in sales numbers have cooled off, but for automakers like Mitsubishi who sold thousands of Outlander PHEVs late last year, timing was crucial.

In just December of 2013, almost 9,500 plug-ins were sold.  Since then, about 3,500 more have been registered in the first 3 months of 2014.

Bovag spokesman Tom Huyskens told the Dutch News:

“It is very odd that Mitsubishi sent its entire worldwide production of the Outlander PHEV to the Netherlands…”

Nope…it’s not odd.  It’s a wise move by Mitsubishi.  Unfortunately, the side effect is that the US is still without the Outlander PHEV.

Source: Dutch News

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17 Comments on "Tax Breaks on Plug-In Vehicles Cost Netherlands $688 Million in 2013"

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Will this allow them to export more oil though? (may be a dumb question)

Oil? In The Netherlands? Ha, we have no oil 🙂

But we do have lots of natural gas.

$31k average per vehicle?!
That’s huge.

Yeah, no joke. $31K is almost the price of every EV except the Tesla.

Folks gaming the system I suppose.

I distrust the source of this article.

There have been overly optimistic calculations doing the rounds, and I get the feeling that these are the basis for the Volkskrant article to exaggerate the case for ‘tax handouts to the rich’.

http://www.zerauto.nl/2014/04/25/ev-nieuws-wiebes-kan-rekensom-volkskrant-niet-volgen/

(sorry in Dutch – Google Translate is your friend)

It appears the newspaper in question mindlessly and uncritically copied the politically motivated calculations of an MP of one of the opposition parties.

This is a Golden opportunity for the treasury to get more money by allowing more tax breaks for electric cars since Germany is in a bad need for natural gas. Putin will stop the natural gas and oil to Germany since Germany has to apply tough sanctions on Putin otherwise Germany will be disobeying the US and NATO. NL is going to be more reach to by selling every cubic inch of natural gas to Germany. Norway too will increase its wealth too in the short term for the very same reasons.

We’re not able to sell more gas. Actually, we are reducing production.

The extraction of gas was causing earthquakes that cracked buildings all across Groningen (where most of our gas comes from).

Forced by protests, the government decided to reduce production.

Sorry to hear that!

688mm is a lot for little NL, considering 100k PHEV’s selling in the US, many qualifying for only half, or less, of the full 16kwh/$7500 tax-credit, would not total an amount that is much larger.

Except that you can bet the numbers are a load of bollocks, with assumptions about what kind of vehicles people would have purchased, or assuming that people would even have bought vehicles had there not been tax breaks available.

Even if those numbers are not true it shows that the Netherlands would benefit from a bonus-malus system where the gas guzzlers pays for the incentives of the EV’s.

So, there will be a big lull in PHEV and BEV sales in Netherlands now. Wondering, did the buyers need to BUY by Dec 31, or get delivery by then to qualify for the tax credits?
If they needed to buy, then first quarter shows some of the backlog effect from Dec 13.

I guess, most of the near-term buyers of BEVs and PHEVs in Holland already bought last year.

Delivery by Dec 31. Then it went deep down in january. The deliveries from that point should be mostly people aware that they would get the car in 2014 and not 2013, in other words a more “natural” level of sales.

Since these are tax breaks, I guess the assumption is that these people would have bought ICE vehicles instead, had there been no tax break?

I wonder how true that is?

688 million may be a lot for one year, but these cars have planted a seed and should provide benefits to the country for 15+ years.

Interesting Article, but what they do not mention is the enormous tax break that went to efficient gasoline vehicles. This is at least a factor ten more or so! (EUR 10 billion). The statement is something like “non smokers are costing us tax money, because they don’t pay taxes on their cigarettes”.