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Higher taxes for internal combustion engines?

Professor Ferdinand Dudenhöffer, founder and director of CAR-Center Research, suggests a higher value-added tax for gasoline and diesel cars.

The "Car Pope" Ferdinand Dudenhöffer advocates for higher taxes for internal combustion vehicles. | Photo: Autoren-Union Mobilität/CAR
The "Car Pope" Ferdinand Dudenhöffer advocates for higher taxes for internal combustion vehicles. | Photo: Autoren-Union Mobilität/CAR
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Thomas Kanzler

In an interview with "Spiegel online", he explained his idea. Dudenhöffer proposes to increase the VAT for combustion vehicles from 19 percent to 26 percent. This would mean an additional 2,500 euros per vehicle on average flowing to the state. Currently, the government is subsidizing pure electric cars with up to 9000 euros until the end of 2022, and plug-in hybrids receive a subsidy of up to 6750 euros. The new government had announced a restructuring of the aid by the end of the year.

Tax Increase for Internal Combustion Engines, No Environmental Bonus for Electric Cars

The increase is set to take effect if the state premium of 9000 euros for the purchase of a purely battery-electric vehicle should be phased out. The tax increase and rising CO2 charges along with continually higher fuel prices – according to Dudenhöffer – could make electric cars more attractive again.

CAR – Think Tank for Mobility

The "CAR – Center Automotive Research" is a private research institute with locations in Duisburg and Beijing. The main activities are mobility studies with a focus on the automobile and supplier industries, and international congresses.

What does that mean?

One can already see the headline "Government plans tax increase!" in the tabloid media. The often insufficient expansion of the charging infrastructure is by far the greatest obstacle to the transition to electromobility.

Translated automatically from German.
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