Germany has given the green light to a tax reform in the automotive sector with a tax reduction on the purchase of 100% electric vehicles. A measure that comes in the middle of a battle between car manufacturers and the Government of Pedro Sánchez due to the lack of incentives for the transition from combustion engines to electrified engines. The socialist executive, especially the Ministry of Finance, continues to deny a change in automobile taxation, ignoring the tax cuts already undertaken in other European countries.
More precisely, the Olaf Scholz Executive approved a program of aid for the purchase of electric cars, which includes a tax reduction of an average annual amount of up to 465 million euros between 2024 and 2028 with which companies will be able to deduct up to 40% of the value of electric vehicles. A figure that will be gradually reduced until reaching 6% at the end of the cycle planned before the end of the decade.
A measure that comes as sales of electric cars are collapsing on the European market. According to data published by the Federal Motor Vehicles Office (KBA, for its German acronym), registrations of this type of engine in Germany recorded a drop of almost 70% in August while only 1,600 units in the eighth month of the year. Far from the 2,800 operations of August 2023.
Overall, the German car market, the largest on the Old Continent, recorded a drop in registrations of almost 30%, 197,322 units in August compared to figures from a year ago. Between January and August 2023, electric cars accounted for only 18.6% of all new registrations.
Taxes on electric cars
He Government of Pedro Sánchez He does not want to touch automobile taxation. As confirmed by sources close to Moncloa, in interviews with this newspaper, the Executive has no intention of giving in to the demands of employers in the sector and launching a tax reform to encourage the sale of 100% electric cars, which is what he is doing. reduce VAT from 21% to 0% or remove the taxation of personal income tax assistance.
Some requests to which must be added the payment of incentives of the Plan Moves III at the time of purchase and the installation of charging stations more accessible to the public.
Electricity sales in Spain
This refusal of the portfolio of María Jesús Montero comes in a context of slowdown in sales of electric cars in Spain. The market for electrified passenger cars recorded a drop of 17.8% in August, with 5,706 units sold.
A figure that represents 10.91% of the total market and is very far from the 12.4% share recorded in August 2023. Likewise, in the total for the year, there is already a 1.7% drop in sales, with 69,833 units and only 10% of sales in the total market.
