Filed under: Legislation and Policy, Europe/EU, Germany
Germany switching to federal CO2-based car tax in 2010
Germany has finally announced how it will reform its tax system to factor in CO2 emission levels. After a long political struggle between the two main parties, the SPD and the CDU/CSU, the system will not only change from being based on engine displacement to be dependent on CO2 emission levels, but will change hands. Until now, car taxes were a matter of the Länder (states). This new system is a Federal one, and the switch is blamed as the reason for the delay. The Länder will get €8.9 billion from the Federal government to compensate their income loss.
The new tax system is expected to roll out on January 1st, 2010, a bit late according to Germany's ADAC car club. ADAC stated that consumers won't be convinced to purchase more fuel-efficient cars until that late date. Another car club, called VCD, said that the new tax was too light on cars that burn a lot of fuel.
The system will leave the tax as it is for vehicles following the Euro-2 and Euro-3 standards, which is calculated on engine displacement. It remains unchanged for owners of classic and vintage cars as well. Currently, the average car sold in German produces 170 g/km of CO2, which is quite a ways away from the EU's limit of 130 g/km expected for 2012.
[Source: Auto News]
Reader Comments (Page 1 of 1)
Karl-Uwe Strunzen 4:09PM (6/12/2008)
"This new system is a Federal one, and the switch is blamed as the reason for the delay."
On this forum contributors were stating up until 2008 that in 2008 Germany too would switch to a CO2-based system, the rest of Europe already having done so. Of late I've also seen claims of a new system to be introduced in 2009. The regional tax issue is very commonplace in Europe, and can hardly be blamed for the delay. The "autonomias" in Spain or the "regioni" in Italy are just an example.
http://www.elpais.com/articulo/Gobierno/subira/impuesto/coches/potentes/frenar/emisiones/CO2/elpepusoc/20061203elpepisoc_1/Tes
The CO2 system in Spain also had to be agreed with the "autonomias" and the "bollo" in Italy is stilled excised by the "regioni".
Perhaps, just perhaps..... the reason for this delay of several years has something to do with the German manufacturers (even when they make small cars) not being able to match other European manufacturers when it come to making greener cars ??
http://www.autobloggreen.com/2007/12/08/bmw-daimler-and-porsche-win-worst-eu-lobbying-award/
http://www.autobloggreen.com/2008/04/19/fiat-declared-lowest-co-sub-2-sub-automaker-in-europe/
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Karl-Uwe Strunzen 3:59AM (6/13/2008)
IF this is confirmed I suspect that it will be implemented as a bonus system only, with no malus.
This is the picture in the EU as of 22 February 2008:
Austria bonus-malus 1 July 2008
Belgium bonus only
Cyprus bonus-malus
Finland bonus-malus from 2010
France bonus-malus
nothing yet from Germany
Ireland bonus-malus 1 July 2008
Italy bonus only
Netherlands only annual circulation tax is linked to CO2, not registration
Portugal bonus-malus
Spain bonus-malus
Sweden bonus-malus
UK annual circulation tax only
http://www.acea.be/images/uploads/files/20080302_CO%202%20tax%20overview.pdf
TODAY most countries have already implemented a bonus-malus system, and by 2010 this will likely be everyone. IF Germany implements their system in 2010 they will be lagging the rest of Europe by several years. If then this system will only include a bonus then this will be even more so.
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