“The compensation for disadvantages associated with electric vehicles is a major step on the way to establishing electric cars on the German market. This undoes the effects of higher taxes to date on electric vehicles used as company cars, and that creates a reliable context for planning. Anyone who chooses an electric vehicle for their company car is now no longer at a tax disadvantage,” stressed Matthias Wissmann, President of the German Association of the Automotive Industry (VDA). He was commenting on the resolution of the Mediation Committee between the German Bundestag and Bundesrat (the two German parliamentary chambers) on the law to implement the Mutual Assistance Directive, which includes the compensation for electric vehicles. Today the Bundestag passed the new law, and the Bundesrat will consider it tomorrow (Friday).
It is necessary to reduce the assessment base (gross list price) for taxing private use of company cars because this will create equality between electric vehicles and comparable vehicles with conventional drive trains. “The new regulation will apply not only to pure battery electric vehicles, but also to plug-in hybrid cars,” Wissmann explained.
"However, now the general tax conditions for companies procuring electric cars should also be adapted. Better depreciation options would be the right way to promote such investments,” Wissmann said.