Germany: climate tax to make thermal more expensive than electric?

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Tax thermals to make them more expensive than electric ones

Germany’s Climate and Economics Ministry (BMK) has released a strategy paper suggesting that a climate tax for new registrations of combustion-engined cars could help electric cars become cheaper than their fossil-fuel equivalents, thus reports the German newspaper Handelsblatt.

Volkswagen’s ID.3 and ID.4 electric car models are cited as an example, which would become cheaper than the Golf through this tax sleight of hand.

Towards a taxation of company cars with internal combustion engines

The document, which indicates that a CO2-dependent climate tax would be used in combination with an electric car purchase bonus, also indicates that Minister Robert Habeck plans to “increase company car taxation for combustion cars fossil”.

Letter from 13 companies for a change in tax incentives

The Greens, alongside Federal Finance Minister Christian Lindner and Transport Minister Volker Wissing, both of the Liberal Democratic Party ( FDP ), recently received a joint letter from 13 companies, including Aldi and Ikea, asking for a change in the measures incentives, in particular to promote pro-environmental mobility and the conversion of car fleets to electric cars.

The German government presented an emergency climate protection program last week in response to its failure to meet its own climate targets, particularly in the transport sector. However, a review of the measures associated with company cars was not on the agenda, despite the government’s goal of having around 15 million electric cars on the roads by 2030.

According to the Federal Motor Transport Authority ( KBA ), electric car registrations increased by 26% in the first quarter of 2022 compared to the same period in 2021. However, a report by business consultancy PwC warns that Germany is not will fail to meet its target of 15 million electric cars by 2030 due to a lack of charging stations, and suggests 10 million as a more realistic figure for 2030.

Our opinion, by leblogauto.com

A proposal made to save the planet…. Or the German manufacturers? all this at the expense of consumers? because in the end, electric models should always be expensive for consumers … but also vehicles with internal combustion engines. Enough to put German motorists in a dead end, unless they have the chance to benefit from a company vehicle. In this case, it is the employer who will “sponsorize” the German automotive industry. You still have to be employed…

Source: Handelsblatt

to summarize

How to strongly “encourage” consumers – and companies – across the Rhine to buy electric vehicles and, what is more, German cars? Berlin has apparently found THE solution.
Germany’s climate and economics ministry (BMK) has released a strategy paper suggesting that a climate tax for new registrations of combustion-engined cars could help electric cars become cheaper than their fossil-fuel equivalents.

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Germany: climate tax to make thermal more expensive than electric?