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MIL OSI Translation. Region: Germany / Deutschland –

Source: Federal Ministry of Finance 09.10.2020

On October 9, 2020, the Federal Council approved the seventh law amending the Motor Vehicle Tax Act. The change in the law will apply to new registrations from January 1, 2021. The greater weighting of the CO2 component and the tax incentives for vehicles with reduced emissions create clear incentives for innovative, climate-friendly mobility that remains affordable in the future.

Source: picture alliance / VisualEyze

Source: picture alliance / VisualEyze

With the draft law, the reform process started with the climate protection program of the federal government will be continued and set a clear signal for sustainable and climate-friendly road traffic favor. The greater weighting of the CO2 component and the tax incentives for vehicles with reduced emissions create incentives for innovative, climate-friendly mobility that remains affordable in the future. The “WLTP” emissions test procedure introduced in 2018 is taken into account, which maps the exhaust gas and consumption values ​​more realistically. In concrete terms, this means that in the future, tax rates of 2 to 4 euros per gram per kilometer are planned for initial registrations, in the range of more than 95 to 195 grams per kilometer should apply within five equal levels and one level open at the top. For cars with CO2 test values ​​of up to 95 grams per kilometer, which will be registered for the first time by the end of 2024, the respective annual tax will be reduced by 30 euros each for five years. In future, this will reward those whose vehicles have lower CO2 emissions. On the other hand, the tax will increase for vehicles with a high emission potential. The draft law will also further strengthen electromobility. Electromobility is a key element in sustainably reducing climate and environmental pollution. Therefore, the ten-year tax exemption for all-electric vehicles registered for the first time, which would have expired at the end of the year, will be extended to 2025. All-electric vehicles, which will be registered for the first time in the next five years, will therefore be tax-exempt until the end of 2030. In order to relieve the financial burden on small and medium-sized craft businesses, a burdensome special regulation for certain light commercial vehicles up to 3.5 tonnes will finally be abolished. Craftsmen and small business owners are absolutely dependent on these commercial vehicles for their work. They are therefore particularly hard hit by the previous higher taxation. Due to the current corona-related burdens on medium-sized companies, we want to take some relief here. Of this, approx. 390,000 vehicles will benefit. The draft law will steer demand towards cars with low CO2 emission potential and promote the switch to electric vehicles. This makes an important contribution to achieving the common goal of sustainably reducing CO2 emissions and at the same time ensuring affordable mobility

MIL OSI

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and / or sentence structure not be perfect.

MIL Translation OSI