International fleet operators can now secure cost savings approaching tens of thousands of pounds for their companies by reducing the average carbon emissions of a typical fleet of vehicles by just 10g/km, according to the 2013 edition of the annual European Taxation Guide. The guide, which is produced by Nexus Communication in conjunction with global accountancy firm PricewaterhouseCoopers (PwC), reviews the company car tax situation in 23 European nations in print and 29 countries in digital format. Interestingly, company cars are already closely linked to carbon emissions-related taxes in 20 member states throughout the continent, while many other countries plan to follow suit soon as their governments continue to target company cars as a source of tax-raising revenue. Nevertheless, fleet operators can manipulate fleet policy to secure significant savings. By lowering CO2 emissions by a mere 10g/km, from 135g/m to 125g/km, a typical fleet of 200 cars can produce annual fuel savings of up to ó44,000 in most European countries. In Portugal, for instance, once direct taxes are included, cost savings can be as much as ó132,000 a year. Meanwhile, in Belgium, a country which boasts more indirect and hidden taxes, businesses could save a whopping ó163,000 each year. When considering potential tax savings, reducing CO2 emissions makes the biggest financial difference in the most developed Western European nations including Belgium, Holland, France, Spain and the UK. Following a comparison of company car tax systems in the above countries, it is clear many have registration taxes linked to CO2 emissions generated by fleets. The guide goes on to indicate that it will no longer be sufficient for fleet managers to select diesel vehicles to achieve the optimal cost-saving emissions levels with thresholds reducing all the time throughout Europe. The introduction of new EU-backed carbon emissions limits of 130g/km by 2015 and 95g/km by 2020 means that governments will continue to cut CO2 emission thresholds within existing car tax regimes in order to maintain income levels. Subsequently, lower limits will result in fleet managers having to become increasingly creative in selecting the right vehicles for their business. The 23 countries covered in the printed version of the 2013 Taxation Guide are: Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Luxembourg, Netherlands, Norway, Poland, Portugal, Romania, Russia, Spain, Sweden, Switzerland, Turkey and the United Kingdom. The extended digital version also includes: Bulgaria, Estonia, Latvia, Lithuania, Slovakia and Slovenia.
