The “Cash for cars” is canceled by the Constitutional Court

Posted the 24 January 2020
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In its ruling dated 23 January 2020, the Constitutional Court has annulled the act of 30 March 2018 re the implementation of a mobility allowance being the « cash for cars » or the exchange of the company car for a (cash) mobility allowance.

The Court has ruled that said legislation is discriminatory and creates a tax inequality - between those employees having a company car and those who don’t - which is not reasonably justified and moreover that it is not proven that the measure will allow to meet the objective of the act of reducing the number of company cars.

The annulation is however not immediate and will only have effect on 31 December 2020 in the absence of any corrective legislation. This aims at maintaining the legal safety.

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