On Wednesday, 16 January, the Parliamentary Commission of Finance has approved the Mobility Budget. This is one of the last steps before the Mobility Budget can finally enter into force. If the Commission on Social Matters approves it as well then the Parliament will give the final green light in plenary session in February and will the Mobility Budget enter into force as of the first of March 2019.
The main goal of the Mobility Budget is to offer sustainable means of transportation that are at the same time attractive from a tax point of view. If offered by the employer, the employee may choose to change his/her car in exchange for a budget based on the Total Cost of Ownership of the car handed in. With that budget he or she can choose a more eco-friendly car, sustainable means of transportation (use of bicycle, public transport, car sharing etc… but also certain costs for living closer than 5km from work) or a cash payment. A combination of these 3 pillars is possible. More information about the Mobility Budget can be found in our previous newsflash.
Cash for car
Note that there are some changes in the pipeline on the cash for car or Mobility Allowance as well. For example for new hires the waiting period of one year will be abolished and in case of a change of function, the employee may be entitled to a different Mobility Allowance based on a higher (or lower) category of company car linked to his/her new function. The Parliamentary Commission of Finance will discuss these changes soon.