Germany approves EV incentives

The German government has approved tax breaks for electric vehicles in a bid to meet its target of having a million EVs on its roads by 2020.

It was agreed on Wednesday by the German cabinet that electric cars will be exempt from paying vehicle tax for ten years with retroactive effect from Jan. 1, 2016. Employees who charge their electric vehicles at work will also pay a reduced tax rate of 25 per cent.

The tax breaks follow the news last month that the government and car industry will work together to give buyers of electric cars a €4,000 incentive, while buyers of plug-in hybrid cars will get a premium of €3,000.

In addition, €300m will be invested to develop the charging station infrastructure.

Transport Minister Alexander Dobrindt said, ‘The key for a breakthrough in electromobility is nationwide charging infrastructure.’

There are currently only 50,000 battery-powered cars on German roads, although these measures are hoped to drive sales of a futher 400,000 units.