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The incentives for retired savings accounts and car and bicycle sharing, among others, “were inadequate.”
The government will allow five tax benefits to expire at the end of this year because it considers that they are “inappropriate or obsolete in the current context and have zero or residual use,” and can be replaced by other types of more effective support, “says a source. of the Ministry of Finance.
This batch of benefits that ends on Thursday, December 31, includes the retired savings account, ending with a savings incentive created 32 years ago, as it is inappropriate to the current circumstances.
This is the IRS exemption for the interest on these accounts in the part whose balance does not exceed € 10,500 and that can be used on account. This was one of the risk factors identified by Finance, as it allowed retirees with higher incomes to obtain a greater exemption by dispersing deposits in several accounts, allowing the misuse of the incentive.
In addition, a study by the Tax Authority in collaboration with the New School of Business and Economics on benefits at risk of expiring recommended that it not be extended, noting that “the current level of interest rates on deposits makes this benefit currently irrelevant as an instrument to promote savings and social protection ”, indicates an official financing source.
Cars and bicycles
Another tax benefit that ends tomorrow, Thursday, is related to the deduction in the IRS and the IRC of the expenses with shared car and bicycle systems, considering the expense for tax purposes “the amount corresponding to 110% or 140%, respectively, the car sharing and bike sharing expenses incurred by IRC and IRS taxpayers, with organized accounting. ”The end of this incentive is explained by Finance with the low utilization rate.
Still in the field of environmental protection, the Government ceases the incentive to invest in bicycle fleets. In this specific case, in 2018, only seven taxpayers benefited from the support and tax expenditure was residual.
Also due to poor adherence, the incentive to invest in vehicles powered by alternative energy is ending. In 2018, only 10 beneficiaries subscribed to a tax expense of 40 thousand euros.
On December 31, the benefit related to the shipping companies of the national merchant marine will also expire. In this case, fiscal spending in 2018 reached 5.3 million euros, according to a study by the Tax Authority and the working group.
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