Extension of the tax exemption on electric cars until 2035
Germany intends to extend tax exemptions on electric vehicles until 2035, according to Finance Minister Lars Klingbeil in statements to the German news agency dpa. This step is part of broader efforts to support the automotive sector in the country and accelerate the transition to environmentally friendly mobility.
Under the new draft law, electric vehicles registered until the end of 2030 will be exempt from vehicle tax for up to ten years. The current exemption period was set to end on January 1, 2026, but the new plan ensures that incentives continue for buyers who invest early in electric technology. The Ministry of Finance clarified that the maximum exemption period of ten years will only apply until December 31, 2035, to encourage rapid uptake of electric vehicle purchases.
Klingbeil said that the tax exemption for cars is part of a broader package of measures supporting the German automotive industry, which will be discussed during a summit for the automotive industry in Berlin on Thursday, attended by Chancellor Friedrich Merz and several senior sector leaders.
The minister added: "We now need a strong package to lead the German automotive industry into the future and ensure job preservation," emphasizing that maintaining Germany's position as a global leader in the automotive industry is a top priority for the government.
Klingbeil concluded his speech by saying: "Everyone knows that the future is electric," emphasizing the government's commitment to sustainable innovation and its belief that the best cars of the future will be made in Germany.