FVA: Entrepreneurs consider the NoVA increase to be wrong

FVA: Entrepreneurs consider the NoVA increase to be wrong

TheFleet Association Austria(FVA) wanted to know how Austrian companies responded to the increaseStandard consumption taxreact and what impact the introduction of NoVA for light commercial vehicles will have on their company fleet. This was done 135 in totalEntrepreneur, managing director and fleet managerquestioned. In total, the participants operate 24,731 vehicles – 8,987 light commercial vehicles and 15,744 cars.Henning Heise, Chairman of the Fuhrparkverband Austria: "Forecasts and estimates are toothless, the study provides the first concrete figures from practice. And they show that the recently passed NoVA law does not have the desired effect on the environment. Instead, in this economically difficult phase, it will lead to additional financial burdens for the companies that do soPass additional costs on to consumersbecome."

Wrong timing

Specifically, 90 percent of entrepreneurs believe the timing of the NoVA increase is wrong. 92 percent do not think it makes sense that, on the one hand, billions in subsidies are paid out and, on the other hand, the burdens on companies are increased. And 89 percent do not consider the standard consumption information due upon purchase to be a suitable control instrument to reduce CO₂-Reduce emissions in the transport sector.

Customers will pay 

According to the results, 60 percent of respondents will pass on all costs resulting from the increased NoVA for cars or the new NoVA for light commercial vehicles to customers. 16 percent will charge at least part of the costs, 13 percent have not yet thought about it. Heise: "In some cases, the NoVA makes commercial vehicles more expensive by over 20,000 euros. This means that we all end up paying more for the carpenter's car, the delivery from the online mail order company or the maintenance of the thermal bath. This fact is often forgotten - or kept secret by politicians."In addition, 22 percent of companies are thinking about registering more vehicles abroad and operating them in Austria in the future.

Use vehicles for longer

The NoVA is supposed to be the CO₂-Reduce emissions. But the law does not achieve this goal - the existing vehicles will simply be driven longer in the future: Specifically, 66 percent of the companies surveyed will use their cars and commercial vehicles for longer in the future. The useful life of cars will be extended by one to two years in over a third of companies and by three to four years in almost a third. For light commercial vehicles, almost one in three companies will extend the period of use by one to two years and almost half by three to four years. Heise: "According to the results, 98 percent of the cars are currently used by companies for three to four or five years or longer. 55 percent of light commercial vehicles are also in operation for at least five years or longer. This suggests an increase in the period of use between 50 and 100 percent. And that can't be in the interests of the environment or in the interests of the tax authorities!?"

E-transporter not practical

Although there is a willingness to switch to electric cars and vans, this is simply not possible for many companies at the moment. Exactly half of those surveyed said that they could not currently replace cars or commercial vehicles with electric models. “The reasons for this are varied. But they show, especially in the commercial vehicle sector, that the state of the art does not yet cover the needs of reality,” says Heise. Specifically, the switch to light commercial vehicles fails due to a range that is too short (86%), too few charging options (57%), a payload weight that is too low for transporting tools and materials (55%) and costs that are too high (52%).

Input tax deduction for all company vehicles

Heise: "There needs to be a rational discussion about the costs of mobility. And entrepreneurs are prepared to pay their share. In return for the NoVA increase, it would therefore only be fair if - as suggested by the FVA - all vehicles used for business purposes would be eligible for input tax deduction in the future - and not just a few van models as well as commercial and electric vehicles. 92 percent of the companies surveyed would also welcome that." And further: “With this study, the Austrian Fleet Association shows thatdesired effect of the NoVA reform is not achieved, but companies react in the opposite way. In the course of greening and the effort to decarbonize transport, which we consider to be absolutely sensible and necessary, we therefore urgently recommend that the government revise the adopted law and are happy to support it with our expertise.We are currently not seeing a single positive effect“, says Henning Heise, chairman of the Austrian fleet association.