On a change of ownership of a vehicle in France, a number of registration taxes are payable, for both new and second-hand vehicle sales.
One of the small number of universal taxes is called the taxe régionale, which, as the nomenclature suggests, is imposed by the regional councils.
The level of the tax is based on the engine capacity of the vehicle, with a fixed sum payable per ‘cheval fiscal’.
Since 2020, electric and hybrid vehicles have either been exempt or have benefited from a substantial discount from the main tax. The measure was introduced to encourage the transition to more green vehicles.
However, last year the government passed a law granting the councils complete freedom to set the amount of the tax applied, whether at the full rate, reduced to 50% or zero.
According to reports in the French press, 12 out of the 13 metropolitan regions have confirmed the end of the exemption effective 1st May.
The only region to retain the concession is the Hauts-de-France, where only minor administrative charges will be payable. Regional Council President Xavier Bertrand has stated his desire to "preserve the region's attractiveness and encourage clean mobility despite budgetary pressures."
In all other regions, the tax will now be payable at the rate of 100%.
The reason for the change is down to budgetary pressures. The tax is an important source of revenue for the regions, at a time when there is substantial pressure on the need for infrastructure development.
In addition, the market for electric vehicles has developed considerably since 2020, so that councils now see little need to provide fiscal incentives. According to figures provided by the French association of motor manufacturers, 1 in 4 vehicles now being purchased is electric.
The impact on motorists will be at least several hundred euros in registration taxes for an electric or hybrid vehicle, but can be up to around €750.
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