Legislative project to be launched on amending purchase subsidy schemes for vehicles

The Ministry of Transport and Communications will start preparing a government proposal to amend the Act on Fixed-Term Subsidies for the Purchase of Vehicles Powered by Alternative Fuels. 

The purpose of the proposal is to continue the subsidy schemes for the purchase of gas-fuelled vans and lorries, regardless of the changes in EU legislation. At the same time, it is proposed that conversion subsidies for passenger cars be reinstated in the Act.

Conversion subsidies proposed to be reinstated in the Act

Some of the subsidies for purchasing gas-fuelled vans and lorries are currently granted as de minimis aid under the so-called De Minimis Regulation. On 13 December 2023, the European Commission issued a new De Minimis Regulation and its amendments are to be taken into account as of 1 July 2024. 

Under the new Regulation, national subsidies for the purchase of vans and lorries could also be granted for the purchase of vehicles intended for the transport of goods by road.

In its statement issued on 14 November 2023, Parliament required that the Government submit to Parliament a proposal for reinstating provisions allowing subsidies for gas and ethanol conversions. Regulation on conversion subsidies for passenger cars is proposed to be reinstated in the Act.

Some of the appropriations reserved for subsidies for purchasing gas-fuelled vans and lorries and for converting passenger cars have remained unused. So the proposal would have no impact on central government finances. The final decisions on the appropriations will be made by Parliament.

Next steps

Preparations for the act will begin at the Ministry of Transport and Communications in cooperation with stakeholders. The preparation process will include a consultation round.

Inquiries:

Emmi Simonen, Senior Specialist, tel. +358 295 342 108, emmi.simonen(at)gov.fi

Sara Vänttinen, Senior Specialist, tel. +358 295 342 177, [email protected]