Government wants to halve taxes for electric service, car

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The Federal government is planning a lavish tax gift for drivers of environmentally friendly company cars. Who has a Bicycle, apparently empty.


The Federal Cabinet plans to adopt to next Wednesday a billion-dollar tax gift to the users of environmentally friendly company cars. In dispute is whether the advantage will be temporary or permanent and whether or not the countries agree.

The Federal government wants to promote the use of service vehicles with electric or Plug – in Hybrid-drive control. For this purpose, the benefit, the users of such cars as a Supplement to your salary have to pay tax on is to be halved. You need to car for the private use of the service only half as much taxes and social security contributions as in the past.

Treasury at only half the list price

Normally, for a service a percent of the list price of the car monthly taxed. So more cars with eco-friendly drive in the vehicle fleets of companies and public authorities, is soon to apply only half of the list price.

The Federal Cabinet will decide on the reform next Wednesday. It costs the tax authorities for the years 2019 to 2021 to around 1.8 billion Euro. It remains to be seen whether the measure will be limited for this period.

The ecologically oriented transport club of Germany calls for the halving of the monetary advantage to extend also to service bicycles, which is not previously planned. It is also questionable whether countries agree to the project in the Bundesrat. You have to bear half of the loss of tax revenue.

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