The government of France uses a "bonus-malus" system to encourage its citizens to go green with their next car purchase. The more fuel efficient a vehicle you buy, the bigger incentive you get. The more gas guzzling a vehicle you buy, the bigger penalty you pay. Unfortunately for France, too many people are buying fuel efficient vehicles and taking advantage of the government incentives, which means income from the gas guzzling penalty hasn't been high enough to make the program budget neutral.
- Xavier Navarro
- Nov 1, 2008
Although the French Minister of Economy complained about the reduction in taxes when the bonus/malus system started in France, the whole scheme is only now getting some changes. How does the system work? When you purchase a car, you have to pay an additional tax (malus) if the car produces too much CO2, or you might get money back from the state (bonus) if it's below a certain amount.
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