From 1 January 2025, a new BPM scheme will come into force that will significantly affect combustion-engined commercial vehicles. This change aims to reduce carbon emissions and encourage the switch to more environmentally friendly vehicles. In this article, we discuss the impact of this scheme and the rise of electric commercial vehicles.
What is BPM?
BPM, or Tax on Passenger Cars and Motorcycles, is a tax levied on the purchase of new vehicles in the Netherlands. Traditionally, BPM was calculated based on the catalogue price of the vehicle, but from 2025, this tax for company cars will be based on CO₂ emissions.
Changes to the BPM scheme
The new BPM scheme means that commercial vehicles with combustion engines, such as diesel, petrol and CNG, will have to pay BPM based on their CO₂ emissions. This could lead to significant price increases. For example, a popular van like the Caddy Cargo Comfort 2.0 TDI can expect a price increase of around 43% due to the new BPM rules.
Benefits for electric vans
Fully electric commercial vehicles, on the other hand, remain exempt from BPM as they do not emit CO₂. This makes electric company cars more financially attractive and encourages entrepreneurs to switch to more environmentally friendly options. In addition to the BPM exemption, subsidies and tax breaks are often available for electric vehicles, making the switch even more attractive.
Development of electric commercial vehicles
The market for electric commercial vehicles is growing rapidly. Manufacturers are launching more and more models with improved range, convenient options and higher towing weights. Many new electric commercial vehicles will be launched in 2024 and 2025, increasing the choice for entrepreneurs.
Outlook
The new BPM regime will undoubtedly have a major impact on the commercial vehicle market. Companies currently using combustion engine vehicles will see their costs rise, which may encourage them to switch to electric alternatives. With ongoing development and innovation in the electric vehicle sector, the switch to electric commercial vehicles is becoming increasingly attractive and feasible.