Overview
- Germany's Finance Ministry says extending the Kfz vehicle‑tax exemption to 2035 is under review despite a coalition pledge, and an industry 'Autodialog' is planned for October 9.
- The Transport Ministry says it supports prolonging the exemption to preserve a purchase incentive for private buyers.
- Under current law, BEVs first registered by December 31, 2025 remain tax‑free for up to ten years but not beyond 2030; vehicles registered from 2026 would be taxed by weight with a 50% rebate for EVs.
- Automaker and dealer groups including the VDA and ZDK urge clarity, warning that ending the break would dent sales and hurt the auto trade.
- Austria introduced an annual EV tax based on weight and power in April 2025, and the U.S. federal $7,500 EV credit expired on September 30 with carmakers offering discounts and lease adjustments, underscoring how incentive shifts can quickly sway demand.