Budget Day and car tax: this will change for you as an entrepreneur in 2023
20 oktober 2022
Every third Tuesday in September is Budget Day: the moment when the new tax plans are announced again. This also applies to car tax.
We have listed below what will change for you as an entrepreneur and what you should take into account for 2023.
1. Abolition of bpm
Do you drive around for work in a van with a gray license plate? Then you currently do not have to pay BPM if you use the car for more than 10 percent business purposes. Unfortunately, it has been announced that this will change from 2025. From that moment on, you do have to pay BPM for your van.
This rate is calculated based on how much CO2 your car will emit. For diesel and petrol cars this is already 66.91 euros per one gram of CO2. If you want to avoid this high cost item, you must drive an electric van from then on. You do not have to pay BPM for these emission-free cars, as they emit zero grams of CO2.
2. Increase in motor vehicle tax
Another change when you drive a van: the increase in motor vehicle tax, or MRB. This will be increased to 15 percent from 2025 and will increase even further in 2026, with an increase of 6.96 percent.
3. Change in addition
The addition percentage will change in 2023. A percentage of 16 percent still applies to new electric cars , but from 2023 on the first 30,000 euros. In 2022 this was 35,000 euros. After the 30,000 euros you pay 22 percent additional tax. For fuel cars the additional tax remains 22 percent.
4. Increase in travel allowance
The travel allowance will be increased from 2023. This has been 0.19 euros net for years, but from next year there will be an additional two cents and an extra cent from 2024. In 2023 it will therefore be 0.21 euros and from 2024 it will be 0.22 euros. This applies to both salaried employees and entrepreneurs who travel business kilometers with a private car.
5. Fuel excise duty reduction
We have all had to deal with the enormous fuel prices. This changed on April 1, 2022, because the excise duty on fuel was reduced by 21 percent. It was later announced that this excise duty reduction would last until December 31, 2022, but fortunately this will be extended for a while. So far, the excise duty reduction on fuel applies until July 1, 2023.
