VDA welcomes Germany’s decision to base motor vehicle tax on CO2 emissions
VDA: Agreement Paves the Way for Rapid Reform of Motor Vehicle Tax
Frankfurt am Main, January 26, 2009. "The agreement on the reform of the motor vehicle tax has paved the way for improving climate protection and reducing the cost burden for small and mid-sized vehicles. In combination with an environmental discount and the suspension of the tax for Euro 4 and Euro 5-compatible vehicles until the middle of the year, the reform will provide additional momentum for the renewal of the vehicle fleet and therefore for the automotive market as a whole," explained Dr. Kunibert Schmidt, Managing Director of the German Association of the Automotive Industry (VDA). "However, this goal can only be achieved if the reform is quickly implemented so that the new motor vehicle tax can really go into effect on July 1." The German Bundestag and Bundesrat therefore need to take rapid action.
Schmidt added that the linear tax increase also guarantees that every gram of CO2 is assigned an equal value, thus fulfilling one of the VDA's key demands for the planned reform. "Those whose cars emit more will pay more," Schmidt pointed out. "It finally provides consumers with the hoped-for long-term planning security that allows them to make purchasing decisions. The German automakers offer customers more than 80 models that consume less than 5 liters of fuel per 100 km. This means that consumers can choose from a big selection of vehicles that are CO2 friendly and therefore subject to a lower tax rate."
Schmidt is satisfied that the solution chosen was the one that made the most environmental and economic sense. He therefore expects the government's decision to lead to a rapid renewal of the overall vehicle fleet. "The average age of the vehicles on the road in Germany is over 8.5 years," Schmidt said. "This high average age also leads to increased fuel consumption. If we could reduce the average age of the vehicles in use in Germany by one year, we would save 800 million liters of fuel annually. That corresponds to two million tons of CO2 per year."
