The year 2024 kicked off with a bang in the United States. In addition to the challenges posed by inflation, certain businesses had to adapt to new regulations. Farmers, in particular, were outraged by the measures and took drastic actions to express their disagreement with the revamped agricultural policies of the European Union (EU). They organized tractor blockades, set tires on fire, and even resorted to throwing manure at administrative buildings.
The EU’s goal is to achieve climate neutrality by 2050, and as farming is responsible for approximately 11% of the bloc’s greenhouse gas emissions, decision-makers deemed it necessary to designate 4% of arable land as off-limits for crop cultivation. Furthermore, farmers were required to reduce their use of fertilizers by at least 20% and refrain from planting the same crop on the same plot of land every year.
While these measures were gradually implemented, the new EU policy also opened up opportunities for increased competition with farmers from countries outside the bloc, thanks to new free-trade agreements. This development caused significant discontent among French agronomists, and their counterparts from Germany, Belgium, Italy, and Greece joined them in protest. Eventually, the demonstrations reached Brussels, Belgium, where the EU Commission is headquartered.
In response to the widespread opposition, EU officials temporarily backed down and agreed to eliminate the rule regarding fertilizer reduction. However, this decision did not alleviate all concerns. The French, in particular, were burdened with new car taxes that affected not only the wealthy but also owners of high-riding vehicles, including hybrids and plug-in hybrids. Although the tax structure did not explicitly target SUVs, it placed additional financial pressure on their owners.
In the previous year, purchasing a vehicle emitting 141 g of CO2 per kilometer resulted in an extra tax of €1,000 ($1,075) for the owner, in addition to regional and weight levies. Furthermore, a value-added tax of 20% was applied. Consequently, buying luxury vehicles like the BMW M3 or Audi SQ5 in France was already quite expensive.
Starting this year, French buyers of new cars with emissions of 141 g of CO2 per kilometer can expect to pay around €1,100 ($1,183) in taxes. Additionally, for every kilogram exceeding a weight limit of 1,600 kg (3,527 lb), an extra charge of €10 ($11) will be imposed.
To illustrate the impact of these taxes, let’s consider the purchase of a 2024 BMW X5 M Competition with a V8 engine. The starting price of €159,300 ($171,209) includes the value-added tax. However, if the car is registered in Paris (Île-de-France region), an additional tax of €1,358 ($1,460) is applied. Furthermore, emissions of 295 g of CO2 per kilometer incur another tax of €60,000 ($64,493). And let’s not forget the weight levy, which amounts to €17,330 ($18,628) for this high-performance SUV.
Therefore, someone buying a brand-new base-spec BMW X5 M Competition in France this year would end up spending a total of €237,988 ($255,841).
Fortunately, pickup trucks, electric vehicles, and cars powered by hydrogen are not subject to this new tax scheme – at least for now. Starting in 2025, purchasers of large plug-in hybrids like the BMW XM 50e will face nearly identical taxes.
To provide some context, buyers in the United States residing in states such as Montana, Oregon, and Alaska pay $122,300 (€113,733) if they manage to acquire the SUV at the manufacturer’s suggested retail price. The only other automotive tax they need to consider is registration. That’s all.
Fuel costs are another story. In Montana, the average price of gasoline is $2.9 per gallon, equivalent to $0.7 per liter. In contrast, the French pay $1.9 per liter, which amounts to $7.1 per gallon.
Regrettably, the expenses don’t end with the aforementioned taxes for individuals born or residing in France who have a fondness for or desire for impressive automobiles. Cities also have the authority to impose their own regulations. This has recently occurred in Paris, where residents voted to triple parking fees for vehicles with internal combustion engines weighing over 1,600 kg (3,527 lb) and electric vehicles weighing over 2,000 kg (4,409 lb).
Consequently, the Tesla Model Y, Europe’s top-selling car, will be exempt from the revised parking fees (once they are implemented) in its rear-wheel-drive configuration (1,909 kg / 4,209 lb). However, if the Model Y has two motors instead of one (2,003 kg / 4,416 lb), it will not escape these fees.
After the referendum becomes official policy, owners of the Model Y Long Range will be required to pay the following parking rates:
– €18 ($19.3) per hour for one to three hours of parking in the first 11 districts
– €29.25 ($31.45) per hour for four hours of parking in the first 11 districts
– €34.25 ($36.83) per hour for five hours of parking in the first 11 districts
– €37.50 ($40.33) per hour for six hours of parking in the first 11 districts
– €12 ($13) per hour for one to two hours of parking in the remaining eight districts
– €16 ($17.21) per hour for three hours of parking in the remaining eight districts
– €19.5 ($21) per hour for four hours of parking in the remaining eight districts
– €22.8 ($24.52) per hour for five hours of parking in the remaining eight districts
– €25 ($26.88) per hour for six hours of parking in the remaining eight districts
Residents will receive discounted parking rates near their residences, but this benefit is forfeited when visiting a restaurant or attending an event. The full rate will be charged in those instances. If you plan on visiting Paris with a rented crossover SUV, be aware of these impending charges. Although they are not yet official, the current administration is working to ensure their implementation.
If the exorbitant cost of parking and the hefty taxes on heavy vehicles in Paris seem unreasonable, consider that the city also enforces a regulation for older cars attempting to enter. To gain access to France’s capital, drivers must purchase a €3.6 ($3.9) sticker to confirm their vehicle’s eligibility. Fortunately, this only needs to be done once. However, failure to possess the sticker or driving an ineligible vehicle results in an automatic fine of €68 ($73) per entry.
Now, let’s address the difficult question. Should the United States adopt a similar approach? Is it feasible for all 50 states to implement such stringent measures against car owners? Would politicians prioritize combating congestion, pollution, and global warming by discouraging the use of personal vehicles?
Since news of Paris’ decision broke, individuals on various social media platforms have expressed their support. Surprisingly, some Americans (and Canadians) have stated their willingness to endorse higher levies and increased parking fees for larger, more polluting cars.
Even if these severe taxes could somehow be implemented on a national level, they would have minimal impact on public health and the environment. In the previous year, the top three best-selling vehicles in the US were Ford, Chevy, and Ram pickup trucks. If America were to follow France’s lead, all these trucks would be excluded. The fourth best-selling vehicle, the Rav4, also falls short of the eligibility criteria due to its weight of just under 1,600 kg (3,527 lb).
It’s important to note that the issue at hand is not solely Americans’ love for pickup trucks. It is influenced by the culture, urban planning, and the lack of reliable public transportation. Paris offers a multitude of transportation options, including subways, buses, trams, taxis, and scooters, making parking spaces less essential. In the US, even employers inquire about car ownership, making it difficult to escape the reliance on personal vehicles unless one is financially privileged.
Furthermore, personal vehicles are often associated with independence and freedom. The ability to go wherever and whenever one desires is highly valued. This is perhaps why some states permit individuals as young as 14 years old to obtain a learner’s permit.
Finding a solution to minimize pollution from road transport would be beneficial. However, increased taxation and higher parking fees are not the answer. People need and deserve reliable alternatives before being asked to reduce their reliance on personal vehicles. Currently, the focus seems to be on constructing single-lane car tunnels rather than investing in high-speed rail.
While Europeans may push themselves to champion the green movement, potentially upsetting farmers and car owners in the process, Americans are not in a position to do so at this time.