The ecological penalty on cars brings in a lot of money for the State

In 2024, the ecological penalty underwent a major revision that led to an explosion in tax revenues in France. This system aims to discourage the purchase of polluting vehicles by increasing taxes on them, which mathematically increases the purchase price and can push some buyers to opt for smaller, cheaper cars that emit less CO2.

A strict revision of the ecological penalty in 2024

In 2024, the threshold for applying the ecological penalty was lowered from 123 to 117 grams of CO2 per kilometer. This measure now concerns a greater number of thermal vehicles, in particular SUVs and sports cars. Result: tax revenues almost doubled from 379 million euros in 2023 to 737 million euros in the first half of 2024.

Some car models are particularly affected by this measure. The Renault Trafic, the Ford Tourneo Custom and the Mercedes V-Class alone account for almost half of the tax revenues generated in the first half of 2024. For example, the Renault Trafic, with more than 4,300 units sold, brought in 163 million euros. But even some models intended for households, such as the Dacia Sandero or the Citroën C3, are affected.

Consequences for owners

Owners of affected vehicles are seeing their costs increase significantly. The penalty can vary from 1,000 euros for a 4 hp vehicle to 60,000 euros for a 15 hp model. This increase in registration taxes aims to encourage the purchase of more environmentally friendly vehicles.

With these new measures, tax revenues from the ecological penalty could exceed one billion euros by the end of 2024. Good news for France’s coffers, but bad for consumers and, above all, car manufacturers. The latter are suffering from inflation and falling consumption, and the increase in taxes linked to polluting emissions is not helping the situation.

Read also
Buying an electric car and administrative formalities: between difficulties and opportunities

Subscribe to consoGlobe on Google News to not miss any information!