Mobility and company cars remain a hot topic in Belgium, both for individuals and employers. In PwC’s recent Mobility report 2025, it is highlighted that despite efforts to promote alternative transportation modes, traditional company cars continue to be a significant part of the remuneration packages for Belgian employees. The report gathered qualitative insights from different companies representing nearly 21,000 company cars. The new Belgian government, De Wever I, is also devoting considerable attention to mobility in its coalition agreement. While the previous government had embarked on a specific path toward CO2 neutrality, the new government appears to have adopted a more pragmatic approach and aims for a more gradual transition.
Key measures in the coalition agreement in terms of mobility
What follows is an overview of the key measures included in the coalition agreement complemented with insights from our recent survey. The key takeaways in the coalition agreement are:
- Reinstatement of fiscal incentives for (plug-in) hybrid vehicles
- Adjustments to the Federal Mobility Budget
- Fiscally incentivizing car pooling for individuals
Previous government’s approach
The previous government attempted to promote public transportation over cars. In situations where car use would still be preferred over public transport, efforts were made to encourage people to transition to more sustainable vehicles. By adjusting the tax treatment of company cars, significant steps have been taken in this area. Our latest mobility report highlights that almost 15% of employees had a company car in 2024, reflecting the system’s strong presence despite efforts to change fiscal attractiveness and promote alternatives. The previous government altered the favorable tax treatment of plug-in hybrid vehicles by significantly reducing their tax deductibility and systematically increasing the CO2 solidarity contribution. Companies adapted to the new regulations and prioritised in most cases a transition to an electrified fleet. This transition played a significant role in the efforts of Belgium to achieve the imposed European CO2 emission targets.
Current government’s pragmatic approach
Where the previous government opted for a rather radical shift, we now observe, as mentioned above, a more pragmatic approach, considering the limitations associated with factors such as electric vehicles, accessible charging equipment and public transportation to revitalize (plug-in) hybrids. Our report indicates that Belgian companies are confronting electrification amidst policy changes and traffic woes, emphasizing an ongoing push toward car-centric mobility policies even as electrification grows.
Fiscal incentives for hybrid vehicles
The first and most noteworthy measure in the coalition agreement with respect to mobility is undoubtedly the reinstatement of fiscal attractiveness for (plug-in) hybrid vehicles. Vehicles purchased until the end of 2027 will benefit from a tax deductibility of 75% throughout their entire period of use. For vehicles bought in 2028 and 2029, this percentage will decrease to 65% and 57,5%, respectively and in line with the deductibility scheme for full electric cars. The new government argues that an electric (company) car, which is traditionally more expensive than a petrol or diesel car, is not yet an option for everyone, given the limited charging infrastructure in some areas. According to our latest mobility report, rising costs for electric vehicles are prompting employers to adopt eco-friendly policies and fuel limits while grappling with challenges like idle fees and home charging setups. In this context, the government’s intention to foresee a more extended transition period for hybrid vehicles are expected to be welcomed by late adopters of a full electric car policy. However, it remains to be seen how the government will precisely define “hybrids” and what the consequences of the new homologation procedure will be. There is a chance that few plug-ins will have a WLTP emission of less than 50 grams of CO2 per kilometer. Nevertheless, this adjustment provides breathing space for the plug-in hybrid, a solution that, when used and charged correctly, is a viable alternative and, in terms of emissions, more interesting than continuing to drive an old petrol or diesel car.
Impact on companies’ policies
It will be interesting to see whether companies, many of which had already decided to transition to a fully electric policy and had taken significant steps towards this (f.e. With the reimbursement of charging costs, installation of home charging solutions), will reverse their decision or not. In our sample, just over 4 in 10 participating companies have explicitly stated that they will have a fully electric fleet by 2028. Our expectation is that the early adopters of a fully electric car policy will continue to advance on this path. However, it seems more realistic that late adopters of a fully electric car policy may postpone the transition to a fully electric policy. In practice, we might expect that this will mainly involve SMEs. Moreover, it should be noted that although the tax deductibility of (plug-in) hybrid vehicles will increase, these vehicles are currently also affected by parafiscal measures. The CO2 solidarity contribution for non-zero emission vehicles increases exponentially between 2024 and 2027. Currently, it seems that there is no intention in the coalition agreement to mitigate this increase.
Adjustments to the federal mobility budget
Additionally, adjustments are being made to the Federal Mobility Budget. The Federal Mobility Budget was introduced approximately five years ago as an alternative to company cars in an attempt to get the Belgians away from their company car. This initiative, available only to employees eligible for a company car, encourages them to waive (or downgrade) their car. If an employee decides to waive (or downgrade) their company car, they receive a budget that can be used for various mobility expenses across three pillars. In the first pillar, an employee can opt for a cheaper or more environmentally-friendly vehicle. The second pillar enables an employee to spend the budget on ‘soft mobility’ expenses, with any remaining budget paid out as cash at the end of the year (third pillar).
Towards a federal mobility budget for all
The existing mobility budget would be restructured into a universal mobility budget, for all employees. This initiative starts with the provision of a budget by the employer, where the car, as well as other modes of transportation may be included in the budget creation. According to our mobility report, employers are open to the idea, but the feeling of inequity and administrative burdens are major obstacles to implementation. One of the most frequently cited reasons for not implementing the mobility budget, as revealed by our respondents, is the potential sense of unfairness between employees who benefit from a company car on top of their salary and those who are entitled to a company car through a salary sacrifice. The latter category is explicitly excluded within the current context of the mobility budget. Additionally, our findings in the report suggest that extending the mobility budget, as foreseen under the government agreement, could encourage an increase in shift towards more sustainable transportation as part of the current existing hurdles would be mitigated.
Focus on carpooling
Finally, the focus on carpooling is also a notable difference from the previous government. While the previous government focused on public transportation as an alternative, or even more as a replacement for company cars, we see that the new government also looks into carpooling as a more responsible use of cars. The government will investigate possibilities for tax deductibility of carpooling costs, so that the carpooling system becomes more accessible (and appealing) to all employees, not just to those working for companies that organize or financially support it proactively.
Invitation to read our Mobility Report
In line with this contribution, we invite you to read our mobility report. This report provides a concise overview of company car policies, including how companies are managing the electrification of their fleet and the associated costs. It also explores how they are implementing their mobility budget in practice and the challenges they face, and the reasons why some companies choose not to implement a mobility budget.
