European Commission Set to Push on Tax Breaks for Clean Cars

The European Commission laid out plans for proposals to help countries in the bloc better use tax incentives to encourage take-up of cleaner cars.

The commission outlined a scheme to decarbonize corporate fleets it will propose by the end of this year, along with recommendations it plans to issue in 2026 on consumer incentives to encourage clean-vehicle purchases, the body said in a communication note Wednesday.

Measures could include tax breaks to more quickly switch corporate fleets to low or zero-emission vehicles, gradual removal of value-added tax deductions currently allowed for corporate purchases of combustion-engine vehicles, and non-double ...