Germany to Extend Electric Company Car Tax Incentives

Germany to Extend Electric Company Car Tax Incentives

German minister of finance Olaf Scholz plans to increase tax incentives for electric company cars, he told a newspaper on Saturday, the government’s latest conceive to boost demand for clean vehicles.

Germany is attempting to extend electric carmobile|car|auto|automobile|machine|motorcar} sales within the wake of a diesel emissions cheating scandal that has engulfed its auto industry in the last 3 years.

“Half of all cars sold-out in Federal Republic of Germany are company cars,” Scholz told the frankfurter Allgemeine Sonntagszeitung.

“So I have determined that we'll not end tax support for electrical cars and plug-in hybrid company cars in 2021 however extend them perhaps over the entire decade,” he said, adding that will help improve air quality and meet climate goals.

He added, however, that the principles for plug-in hybrids would be tightened, in order that only cars which will travel on electrical power further than they are doing today would be eligible.

Since January, drivers of electrical company cars which they also use for personal journeys pay less tax than they might for a vehicle with a combustion engine.