France To Hit Polluting SUVs And Trucks With A $22,240 Tax

SUVs sold in France will soon be hit with large penalties if they emit carbon dioxide above a certain threshold, Bloomberg reports.

A new law voted by the nation’s parliament will see high-polluting SUVs subject to a 20,000 euro ($22,240) penalty in 2020, up from the current penalty of 12,500 euros ($13,873).

Much like many other markets around the world, demand for SUVs across France continues to rise and in the first 11 months of this year, accounted for roughly 30 per cent of new vehicle sales, according to Paris-based consultancy Inovev. The French finance ministry believes the penalties applied to SUVs could generate 50 million euros ($55.4 million) a year in revenue for the government.

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Interestingly, France intends on cutting subsidies for electric and hydrogen vehicles alongside the penalties that’ll be applied to SUVs. In 2020, consumers will be provided up to 6,000 euros ($6,658) toward the purchase of an electric car priced below 45,000 euros ($49,936), but in 2021 and 2022, this benefit will be reduced.

The head of French lobby group PFA, Luc Chatel, says the policy is “incoherent.”

“It’s a double penalty for consumers. The electric-car market won’t take off without strong purchasing incentives,” he said. “Everyone has something to loose: The industry, the environment and the purchasing power of the French.”

French paid out roughly 550 million euros last year in electric and hydrogen vehicle subsidies.