German Manager Magazine: Electric cars: Bundestag extends tax exemption until 2035004576

To ensure that buying electric cars remains attractive, they will be exempt from vehicle tax for another five years. The Bundestag decided this on Thursday.

As a result of the change in the law, electric cars that are registered for the first time by the end of 2030 will remain exempt from tax for up to ten years – but up to a maximum of December 31, 2035. Anyone who only switches at the end of the deadline will only enjoy five years of tax exemption. Without the Bundestag decision, the tax exemption would have expired completely at the end of this year.

AfD was the only parliamentary group to vote against tax exemption

This is a “clear incentive for an early switch,” explained SPD MP Ingo Vogel (49). According to the coalition, the extension of the regulation will lead to a reduction in tax revenue of one billion euros.

Hauke ​​Finger (57) from the AfD, which was the only parliamentary group to vote against the law, accused the federal government of wanting to “throw this money out the window at random”. The CDU MP Stefan Korbach (67), however, called the sum responsible because it makes it easier to get started with electromobility and at the same time strengthens the automotive industry and its suppliers.

Combustion engine shutdown before the end?

The EU had decided that from 2035 new cars would no longer be allowed to emit climate-damaging carbon dioxide (CO₂) during operation. This would actually mean that new cars with combustion engines would no longer be allowed to be registered. The aim is to reduce emissions in the transport sector.

After pressure from industry and member states, the EU Commission announced that it wanted to review the regulation on the end of combustion engines. The black-red coalition would like to campaign at the EU level for easing of the planned ban on new combustion cars from 2035 in order to exempt certain mixed drive types from the regulation.

At the same time, the government would like to reintroduce funding for private purchases of electric cars in order to stimulate demand. Non-pure electric cars such as plug-in hybrids could also benefit from this, which environmental associations criticize. However, industry associations such as the Association of International Motor Vehicle Manufacturers (VDIK) continue to see such drives as an important bridging technology in the coming years.

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