The German government plans to extend the car tax exemption for electric vehicles (EVs) until 2035, according to Finance Minister Lars Klingbeil, reported dpa.
"To get significantly more electric cars on the road in the coming years, we need to set the right incentives now," Klingbeil told dpa. "That's why we will continue to exempt EVs from car tax."
Klingbeil said that he will present a draft law to implement the measure.
Under current rules, the tax exemption for newly registered battery-electric vehicles is set to expire on January 1, 2026.
The draft legislation would extend the exemption by five years, supporting the purchase and ownership of electric vehicles first registered by December 31, 2030.
The maximum 10-year tax exemption would be capped on December 31, 2035, creating an incentive for early adoption of electric cars, the Finance Ministry said.
The change would involve an amendment to the Motor Vehicle Tax Act and is expected to cost the federal government several hundred million euros in lost revenue over the coming years.
Klingbeil described the car tax exemption as one element of a broader package to be discussed at an automotive industry summit with Chancellor Friedrich Merz on Thursday.
"We now need a strong package to guide Germany's automotive industry into the future and secure jobs," Klingbeil said. "We want the best cars to continue to be made in Germany."
Klingbeil emphasized that the automotive sector is in the midst of a major transformation. "Everyone knows that the future is electric," he said.
The meeting at the Chancellery in Berlin is set to bring together several federal ministers, state representatives, industry leaders and union officials.
- Germany
- Tax exemption
- Electric vehicles
Source: www.dailyfinland.fi
