Germany plans to eliminate vehicle tax for electric cars image

In its efforts to encourage customers to buy more electric cars, the German government plans to exempt buyers from vehicle tax, Reuters reports.

The German government is debating for some months now a strategy to surge the sales of electric cars and the talks seem to have reached a common conclusion. According to a draft document seen by Reuters, authorities plan to encourage buyers by exempting them for paying vehicle tax for 10 years. This would be available for everyone aiming to by an electric car before 2020. But for boosting demand for such cars, a proper infrastructure is needed, therefore the government also targets to support a massive expansion of charging stations throughout the country.

Other measures include raising the share of electric cars in the government’s fleet to 20 percent starting next year and putting together a research program to help advances in the development of batteries. However, parties have not agreed yet on other types of incentives, such as cash rebates, which German auto executives have long pushed for. It is still possible to introduce such incentives, but a decision on these will be taken later this month, according to preliminary proposals.

Chancellor Angela Merkel has set a goal for Germany to have one million hybrid and battery plug-ins on the road by 2020, but at the start of year there were around 130,365 hybrids and 25,502 electric cars registered in the country, according to data from the Federal Motor Transport Authority.

Via Reuters