Flanders cancels EV subsidies ahead of schedule

The Belgian region of Flanders is cancelling its purchase premium for electric cars on 22 November 2024, earlier than planned. That is because significantly more consumers applied for subsidies than the government had expected. The funding pot is empty.

Flanders reintroduced the purchase premium in February 2024, which had already been in place in previous years. Consumers can apply for a 5,000 euro bonus when buying a new electric car with a list price of less than 40,000 euros. A 3,000 euro bonus is also available for used electric cars if the vehicle initially cost less than 60,000 euros.

This year, the government was surprised by the success of the subsidy. By mid-October, 11,590 subsidies had been applied for, 9,736 of which were for new and 1,854 for used cars. It has already cost the Flemish provincial treasury around 50 million euros. It is thus two and a half times as much as the originally earmarked 20 million euros.

Flanders actually also wanted to grant a premium for electric cars in 2025 and 2026. However, the government backtracked in February after questions arose about funding, and it was already clear that a new government would be elected in the summer of 2024. And this new government has now decided to let the bonus expire not at the end of 2024, but already by 22 November. So anyone who still wants to buy a new electric car and benefit from the bonus now only has around two weeks to do so. Buyers with a valid purchase contract for an electric car can still apply for the subsidy until 31 December.

belganewsagency.eu