Germany will go with CO2-based car tax in July
Photo by laurenatclemson. Licensed under Creative Commons license 2.0.
It's been a long, hard fight in the German Reichstag to get to this day. After all kinds of vociferous opposition from the big German automakers, it looks like the German government will finally implement an automobile tax based on a vehicle's CO2-emissions. With this move, which Bloomberg says the ruling coalition has agreed on, Germany joins the dozen EU countries that have passed similar laws. AutoNewsWire says that the taxes will be based on the vehicle's engine size and the CO2 emissions.
Der Spiegel found Green Party members who are not happy with the new taxes. One said that, it is "a classic case of deceptive packaging. It is labelled 'climate protection.' But in fact it doesn't do much to change the status quo." The reason is that, while taxes will go down for purchases of small cars, the new tax rates are pretty much the same as they have been for larger, thirstsier vehicles.
[Source: Der Spiegel, Bloomberg, AutoNewsWire]
Reader Comments (Page 1 of 1)
eTM 2:33PM (1/28/2009)
Reichstag sounds not appropriate to me. I think Bundestag is better.
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Joe 4:06PM (1/28/2009)
The tax system will work as follows:
-base tax EUR 2.0 for every started 100ccm of engine displacement for petrol/gas cars
or
-base tax EUR 9.5 for every started 100ccm of engine displacement for diesel cars
CO2 tax free up to 120g/km
then EUR 2.0 for every gram above 120g CO/km.
In 2012 this will be lowered to 110g CO2/km, then in 2014 down to 95g CO2/km
The biggest issue with it? It will only count for new cars. That means everybody that has already made the green choice to buy an economical car will be punched in the face and have to continue paying the higher taxes under the old system. Brilliant this one. Who the hell runs this country? A right, an old miserable woman who likes lobbyists. Oh well...
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Nick 6:40PM (1/28/2009)
I don't get the tax by engine displacement.
Some cars are more efficient with larger engines then small ones....and then some have multi-displacement engines (cylinder shut off) so how do you calculate then??
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William 8:31PM (1/28/2009)
The reason for the tax by engine displacement is the same reason why Germany are the last country in Europe to implement a CO2 tax of any kind and why the Greens are upset: Germany makes the most inefficient vehicles, whether they are big or small cars or engines.
The Reichstag are thus maintaining the status quo, but from July they may also be able to say they have taxes which are linked to CO2.
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Arnold Schneider 2:09AM (1/29/2009)
This whole thing does not do much. It makes things even worse, because now the government can say: We have done sth. - while they really haven't changed anything meaningful.
Change in the way we use cars has to come from other sources than the government in Germany. They are neatly bounded to these luxury-carmakers.
But change can come from customers: There are a lot of people that do care here in Germany. When they put their money where their mouth is, change will come nonetheless - even with a compromised leadership.
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MarkT 5:37AM (1/29/2009)
Well at least Germany is doing something. Here in Australia there is no prospect of car taxes based on fuel efficiency or engine size. Basically this is because the local car industry churns out rubbish archaic 4 litre guzzlers, the same as 40 years ago. Fortunately fewer people are buying these every year.
me 5:24PM (1/29/2009)
So what is the tax on an all electric car ? Or a hybrid ?
How much of Germany's electricity is generated from coal ?
Thanks
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Harrison 10:43PM (5/18/2009)
A good point was raised with electric cars. These taxes are to increase revenue not to help the planet. If everyone drove electric cars the state would make $0 and would come up with a different scheme to steal from car owners.
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