FLEETS in Belgium face increases in tax on company cars unless they encourage drivers into environmentally-friendly vehicles.

Newspaper reports suggest the move, agreed in the Belgian federal budget, could affect about 10% of all cars in the country, which equates to about 600,000 vehicles. Clean cars qualify for a tax advantage. Those emitting less than 105 grams of CO2 per kilometre receive a 15% tax reduction, up to a maximum of €3,280.

The government will introduce the new tax next year. Companies will pay a series of flat-rate fees for company cars ranging from €250 to €1,320. Higher tax is paid on more polluting cars. Cars that emit between 105g/km and 115g/km of CO2 will get a tax advantage of 3%, with a maximum of €615.