2023 CO2 penalty: threshold lowered to 123 g/km and cap raised to €50,000

Article 55 of the 2021 Finance Law sets a multi-year path for the CO2 penalty on new passenger cars. The scale applicable from 1 January 2023 starts at 123 g CO2/km (€50), compared with 128 g/km in 2022, and reaches €49,047 at 225 g/km; above 225 g/km the penalty is €50,000 (compared with €40,000 above 223 g/km in 2022). The penalty remains capped at 50% of the vehicle purchase price. These rules, initially in Article 1012 ter of the General Tax Code, were transferred to the Code on taxes on goods and services from 2022.