Auto industry: Weil proposes tax reduction for purchase of electric cars

Auto industry: Weil proposes tax reduction for purchase of electric cars

The crisis in the car industry is raising doubts about the course towards electromobility. Lower Saxony’s Prime Minister Weil does not think this is helpful. He has other suggestions.

To support the struggling car industry, Lower Saxony’s Prime Minister Stephan Weil is proposing a tax reduction on the purchase of electric cars. “This would have the advantage of providing an immediate incentive to buy, but the shortfall in public revenue would only be gradually offset in subsequent years,” said the SPD politician in the state parliament in Hanover in a government statement on Volkswagen’s situation. Weil did not specify the amount of the tax reduction.

The head of government described his proposal as one of several possibilities. He mentioned purchase premiums, scrapping premiums and a reduction in VAT as other options being discussed.

Because: Doubts about e-mobility are a “disservice”

Weil stressed that accompanying measures must be taken for people with low incomes, such as social leasing offers. “I think we generally have to ensure that people with a small budget can also take advantage of government incentives to switch,” he said.

What does not help at all, however, are “permanent doubts about the course towards CO2 phase-out and electromobility”. The industry has embarked on this course with investments worth billions because the EU and the federal government, under the responsibility of the Union, have set corresponding guidelines. “Sowing doubts now in the middle of the restructuring is really doing the industry a disservice,” said Weil.

Source: Stern

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