Bonus-Malus: vehicle CO2 bonus and penalty system

Implemented in France since January 2008, this is an incentive to purchase vehicles that emit the least CO2. On purchase, a bonus is paid to people acquiring vehicles that emit less than 105g CO2/km (threshold valid on 1st January 2013). Conversely, a purchase tax ("malus") applies to cars that emit over 135g CO2/km (idem). The bonus ceiling for electric vehicles was raised from €5,000 to €7,000 in 2012, up to a limit of 30% of the total cost of the vehicle including tax; that relating to hybrid vehicles has been doubled to €4,000, up to a limit of 10% of the total cost of the vehicle including tax, with a minimum subsidy of €2,000.
New decrees and order have been published in 2014, in order to strenghen the requirements to obtain the CO2 bonus.

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