Big shot of the plane on premium conversion

Why make it simple when you can make it complicated? Perhaps it is this that has said the government at the time to change the premium to conversion auto. Eliza

Big shot of the plane on premium conversion

Why make it simple when you can make it complicated? Perhaps it is this that has said the government at the time to change the premium to conversion auto. Elizabeth Terminal, then minister of Transport, had stressed at the beginning of July the need to focus on "households" and the vehicle "really clean". It is now done.

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A decree, published on Wednesday 17 July in the official Journal, rabotera seriously this premium from 1 August. Finished, the amount depending on the character of taxable or non-household. Now, the assistance will be based on the "income tax reference unit". The decree stipulates that "households in the bottom five deciles (50% of the most wealthy, editor's NOTE) and legal persons (corporations mainly, editor's NOTE) are no longer eligible for the premium conversion", except for the purchase of electric vehicles. The households belonging to the first five deciles will not, as to them, the more benefit from this premium to buy diesel vehicles. Moreover, the cars over 60,000 euros, even electric, will be excluded from the premium.

The cars of more than 60,000 euros, even electric, will be excluded from the premium.

In reality, this change can be explained by the too great success of the scrapping premium, established two years ago by Nicolas Hulot, the then minister for the Environment. She could purchase a new or used car recently, making the case an older vehicle. Nearly 250,000 premiums have been paid in 2018 for a cost of 500 million euros, significantly higher than the initial estimates. And, at the end of June 2019, 220.000 records were already filed. At this rate, the premium would cost $ 900 million to the State, for less than $ 600 million provided for. "This award meets a very great success, it is obviously good news. It allows you to exit the circulation of polluting vehicles and allows the French to buy vehicles that pollute less and weigh less on the budget", commented Elizabeth Terminal on Thursday morning on RTL. It was necessary, she said, "enjoy this dynamic" to change the rules. "50% of vehicles purchased are diesel not very recent so we push our green ambitions (...) We can adjust the criteria in order to be really on the heart of the target," she insists.

But for the Conseil national des professions de l'automobile (CNPA), "the second-hand vehicle is the first victim of this" reform", while he counted "for 68% of all records processed". With the reduction in the number of beneficiaries and more complex, the government should be able to kill this premium, which will send almost 500,000 old cars polluting to the case.

Updated Date: 19 July 2019, 00:00

Kathleen Lees

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