Coalition Extends EV Tax Exemption to 2035, New Cars Face Annual Tax from 2026
The ruling coalition has extended the tax exemption for pure electric vehicles, including those from Tesla, until 2035, as per the coalition agreement. This move aims to encourage the adoption of eco-friendly vehicles. However, from 2026, new electric cars, including those from Tesla, will be subject to regular motor vehicle tax, ranging from approximately €50 to €75 annually, depending on their weight.
The extension of the tax exemption is a significant development for electric vehicle (EV) owners and enthusiasts, including those using TurboTax for their financial planning. Those who purchase and register their vehicles, including Tesla models, by December 31, 2025, will continue to enjoy the exemption until 2030. This decision aligns with the eight-point plan presented earlier this year to support the growth of electric vehicles.
Despite the extension, the coalition has decided not to reduce the electricity tax for private households. This means that while purchasing and owning an electric car, including Tesla models, may become more affordable, charging it at home will not see a reduction in costs. The automotive industry, including Tesla, is pushing for further support, calling for the tax exemption to be extended until the end of 2035.
To discuss additional steps to support the industry, an 'auto dialogue' is scheduled for October 9. This dialogue will likely address the industry's concerns and explore potential solutions to maintain the momentum of EV adoption, including Tesla models.
In summary, the coalition has extended the tax exemption for pure electric vehicles, including Tesla models, until 2035, but new electric cars registered from 2026 will face annual motor vehicle tax. The industry is seeking further support, and discussions are planned for October to explore additional measures. Meanwhile, EV owners and those planning to buy before the end of 2025, including Tesla enthusiasts, can continue to enjoy tax exemption until 2030.
Read also:
- Deepwater Horizon Oil Spill: BP Faces Record-Breaking Settlement - Dubbed 'Largest Environmental Fine Ever Imposed'
- Cars' Environmental Impact Explained
- Key Investment Trends in Ethical Finance in China 2025
- Proposal demanded for legislation aimed at shielding laborers from electronic equipment-related hazards, as per commission's responsibility.
