climate change
Environmental groups call for reform of company car taxation
Politicians’ official vehicles are parked in the government district. photo
© picture alliance / Gregor Fischer / dpa
Many a company car is not very impressive when it comes to climate protection. Are the tax advantages for emission-intensive combustion engines and plug-in hybrids still up to date?
Environmental organizations have spoken out in favor of a fundamental reform of company car taxation. A new analysis by Transport & Environment (T&E) Germany revealed that the tax breaks for particularly polluting company cars with emissions of more than 180 grams of CO2 per kilometer cost the state 1.6 billion euros. According to the association, every tenth new combustion engine company car is an emission-intensive luxury car. The federal government should immediately end the privileges for vehicles with combustion engines in company car taxation.
The company car market offers the greatest potential for electrification, but has so far lagged behind, according to the director of T&E Germany, Stef Cornelis. “The reason for this is that the company car tax has no steering effect and does not offer the necessary incentives for switching to electric vehicles. A tax reform and the reduction of tax incentives for combustion engines would send a signal to companies and car manufacturers to switch more quickly towards e-mobility.”
The abolition of the company car privilege for combustion engines and plug-in hybrids would reduce emissions in traffic and at the same time bring the federal government additional revenue. It was argued that this would finance the 365-euro ticket and thus also a socially acceptable turnaround in mobility.
There is a dispute in the federal government about the taxation of company cars. The Greens want changes, also to finance an additional relief package in the face of high energy prices. Finance Minister Christian Lindner (FDP) rejects changes.
According to a Kantar survey commissioned by Greenpeace, 80 percent of those surveyed want a permanent successor to the 9-euro ticket that expires at the end of August, financed by reducing subsidies such as the company car privilege or the commuter allowance. “A lot of people want an affordable and well-developed public transport service and they accept that subsidies will be cut to finance it,” says Greenpeace traffic expert Marissa Reiserer.