42 Billion in Tax Benefits: EU Countries Subsidizing Combustion Engine Company Cars

Company car owners save an average of €6,800 in taxes annually. With many combustion engines included, the five largest EU countries collectively provide around €42 billion in subsidies. Meanwhile, electric vehicle sales in Europe are declining.

According to a recent study commissioned by the environmental organization Transport & Environment (T&E), the five largest EU countries spend approximately €42 billion each year subsidizing company cars powered by combustion engines. Italy leads the way with €16 billion, followed by Germany at €13.7 billion. France and Poland contribute over €6 billion annually in subsidies.