Luxembourg Extends Tax Incentives for Plug‑In Hybrid Company Cars

The Luxembourg government aims for half of its vehicle fleet to be electric or hybrid by 2030 and has revised its fiscal policy to boost the use of plug‑in hybrid cars as company vehicles. Finance Minister Gilles Roth announced that the tax advantages for company cars will be prolonged and a new incentive added, effectively strengthening support for plug‑in hybrids. The amendment follows earlier reforms that linked the taxable benefit of a company car to its CO₂ emissions, a system introduced under former mobility minister François Bausch. Under the new draft regulation, plug‑in hybrids will receive a more favorable tax rate, while the previous higher rates for combustion‑engine cars remain unchanged. The changes are intended to encourage businesses to adopt lower‑emission vehicles and help Luxembourg meet its climate targets.