FRENCH ECOTAX - EVERYTHING YOU NEED TO KNOW
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1 FRENCH ECOTAX - EVERYTHING YOU NEED TO KNOW PTV GROUP September 2013
2 AGENDA 1. What is ecotax? 2. Who is affected? 3. How does it work? 4. How is it calculated? 5. When will it be introduced? 6. How will it be controlled? 7. What should I do to be prepared? 8. Contact PTV GROUP September 2013
3 1. WHAT IS ECOTAX? Objectives The aim of the ecotax is to impose a levy on the use of free national roads as well as certain sections of secondary, local roads. The tax depends on the number of kilometres travelled and will be levied according to the use of the roads with the following three objectives: Reduce the impact of road freight transport on the environment Increase the attractiveness of a move to other means of transport Maintain the roads and finance intermodality Basis It is based on a decision by the "Grenelle de l'environnement" and is enshrined in law "Loi Grenelle I" dated 3 August Page 3
4 1. WHAT IS ECOTAX? Proceeds The proceeds from the ecotax will amount to approx. 1.2 billion euros per annum and will be distributed as follows: 65 % to the state for the benefit of the infrastructure authority "Agence de Financement des Infrastructures de Transport en France" (AFITF) 20% for the levy charges (implemented by Ecomouv) 15 % to local authorities Page 4
5 2. WHO IS AFFECTED? The ecotax consists of two key parts: The levy, i.e. the relationship between the transport service provider and the state The "passing on", i.e. the relationship between the transport service provider and the forwarder. State Transport service provider Forwarder Page 5
6 2. WHO IS AFFECTED? The calculation of the ecotax impacts on the relationship between the transport service provider and the state. The amount is proportional to the use of the taxed traffic network. The state has outsourced administrative and levying activities to the Ecomouv'-Konsortium. Transport service providers include all French and foreign road freight vehicles over 3.5 T that are driving on their own behalf or on behalf of a third party. This includes semitrailer tractors (Tracteurs routiers, TRR), N2 or N3 and lorries (Camions, CAM), N2 or N3. Special (VASP) or mixed-use vehicles (VASP+CAM), government road maintenance vehicles and milk tankers are excluded. Military, emergency services and agricultural vehicles are also exempt. State Transport service provider Forwarder Page 6
7 2. WHO IS AFFECTED? The "passing on" of the ecotax impacts the relationship between the transport service provider and the client. The principle of passing on costs is enshrined in law. This specifies that the transport service provider must pass the tax on to the parties that benefit from the transport of the goods. This should motivate the forwarder to optimise their transport and use other modes of transportation besides road freight. State Transport service provider Forwarder Page 7
8 2. WHO IS AFFECTED? The amount of the charges that are passed on is based on a flat-rate intra- and interregional percentage specified in the legislation (April 2013) which is added to the transport service amount: 4.4 % for all inter-regional trips; between 1.80% and 6.30% for the 21 regions excluding Corsica This surcharge must be listed separately in the invoices that the transport service provider issues to their client. Page 8
9 3. HOW DOES IT WORK? The taxed road network (1) consists of two types of roads and covers a total of over 15,000 km, which is broken down as follows: About 10,000 km of free motorways and national roads (except for certain sections of national roads); About 5,000 km of certain secondary local roads that may notice a significant rerouting in traffic patterns. (1) No taxed road network in the department of Corsica and in the Departments of Lot, Haute-Savoie, Alpes-de-Haute-Provence and Alpes-Maritimes. Page 9
10 3. HOW DOES IT WORK? The taxed road network is divided into 4100 sections each about 4 km long and each of which are located between two intersections. Ever section is equipped with a tariff point (GPS coordinates). The tax for the relevant section of road becomes payable when this tariff point is passed. So, all vehicles must be equipped with an on-board unit. The OBU transmits the GPS data which calculates the tax. Page 10
11 4. HOW IS IT CALCULATED? Vehicles must be equipped with an electronic OBU (on-board unit) in order to pay the ecotax. This GPS-capable unit records the passing of virtual limits, the "Tariff points" (points de tarification) and transmits the GPS data to calculate the tax. The ecotax will increase transport costs by about 3% for long distances and by up to 10% for short distances. Two regional discounts exist: 30% for the Aquitaine and Midi-Pyrénées regions 50% for the Bretagne region Subscribers to a registered electronic toll system company (Sociétés Habilitées au Télépéage, SHT) receive a discount of 10%. Page 11
12 4. HOW IS IT CALCULATED? A distinction was made between three vehicle categories according to weight and number of axles in order to prepare a tariff table. The following values are applicable from 1 October 2013 (without prejudice) : Tariffs 2013 EUR cent per km and vehicle PL1 PL2 PL3 Euro I and below Euro II Euro III Euro IV Euro V Euro VI Electr Page 12
13 5. WHEN WILL IT BE INTRODUCED? A voluntary test phase starts from July 2013 without any initial taxation. The law enters into force on 1 October 2013 (without prejudice) and the ecotax will be charged from this date. Both transport service providers as well as forwarders only have a few short months to prepare for the new system: Estimation of the tax payable on existing routes and contracts Comparison of the tax amount with a corresponding price increase (transfer to the client) Selection of the most suitable routes Page 13
14 6. HOW WILL IT BE CONTROLLED? The ecotax is a tax that is regulated by customs legislation. Compliance will be controlled by government authorities (Police Nationale, Gendarmerie, Customs). Every violation will be punished by a fine of up to EUR 750 with the immobilisation of the vehicle and a flat-rate fee that corresponds to a 500 km trip (this is doubled if the violation is repeated within 30 days). A control system will be introduced in order to ensure compliance with the statutory provisions. This includes: 173 stationary automatic controls (control bridges) 130 mobile automatic controls 200 mobile control vehicles Several hundred portable terminals Page 14
15 7. WHAT SHOULD I DO TO BE PREPARED? Due to the amount of the tax it is important to start taking the ecotax into account now in quotes in order to ensure that your plans and calculations are realistic and that you do not sustain any losses. Ecotax calculator: A team of experts from the PTV Group have been addressing the issues associated with the introduction of the ecotax since October It has developed a toll and tax calculator that enables the data applicable on the day of the planned transport to be included in order to calculate the precise ecotax amount. PTV has developed an up-todate toll scenario for every toll and tax system in Europe which contains all the current calculation parameters. This allows the user to see the impact this has on their costs depending on the transport date. The ecotax calculator is an integral part of the PTV logistics software. Innovation prize for best ecotax and toll calculation: The PTV solution for determining the toll costs and the French ecotax was awarded the 13th Prix de l'innovation Logistique, organised by Reed Expositions France and the SITL fair, in the "Best Product Innovation" category. Page 15
16 7. WHAT SHOULD I DO TO BE PREPARED? The calculation of ecotax is an integral part of the PTV logistics software. PTV Map&Guide - Europe's most accurate transport route planner PTV Map&Guide calculates the optimal route and takes all the relevant data such as HGV and hazardous goods restrictions, individual vehicle profiles, transport and toll charges and ecotax into consideration and optimises the staging sequence. PTV Map&Guide is the standard for billing in road freight transport. >> Test PTV Map&Guide for free PTV xserver - Integrate geographic and logistics functions into your software PTV xservers are efficient software components that can be integrated into your logistics solutions such as digital maps, geocoding, routing and trip optimisation. >> Request a free test version PTV Smartour the trip optimiser PTV Smartour automatically plans your orders to optimise your trips and considers all the restrictions that are of interest for you and your customer. >> Get in contact! Page 16
17 8. CONTACT Please feel free to contact us if you have any questions regarding the calculation of ecotax using PTV software! PTV Group Energieweg DZ Utrecht, The Netherlands info.nl@ptvgroup.com Tel: Sources: Page 17
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