CNG and LPG tax-free in France

© auto-gas.netThe savings made at the pump will now be enhanced by tax breaks

As of 2017, the TVS (Corporate Vehicle Tax) no longer applies to cars fueled with compressed natural gas or LPG autogas. There are several conditions to be met, though – the vehicles must be low-emission ones regardless of the fuel they use (the CO₂ emission limit is 110 g/km) and the exemption is only effective during the first two years of their circulation. Still, not having to pay a tax for two years is quite something, especially for companies with big fleets.

The exemption was an initiative of the French Senate, in particular MP Valérie Rabault, who hopes the new regulation will speed up adoption of CNG and LPG in France. To date, only hybrid vehicles and EVs were exempt from TVS, while cars running on gaseous fuels also considerably contribute to reduction of greenhouse gas emissions. The new law shouldn't harm the budget due to the currently limited number of vehicles fueled with CNG or LPG – the state's income is estimated to be limited by only 1 to 2 million euros (of approx. 600 million overall).

When it comes to individual drivers, they are encouraged to have their cars converted by receiving rebates or full exemptions on vehicle registration tax. In addition, LPG-powered cars are allowed to be driven without limitations in Paris, while other vehicles, in particular diesels, can only be used every other day during periods of excessive air pollution. Seems like future is bright for gaseous fuels in France!