CashNews.co
German Finance Minister Christian Lindner plans to provide tax incentives for cars run on synthetic fuels from renewable energy sources, or e-fuels, but only in a few years.
It is noted in a draft proposal from the Ministry of Finance, seen by dpa on Tuesday, that a switch to climate-neutral drives and combustion engines with e-fuels could contribute to reducing carbon dioxide (CO2) emissions in the German transport sector.
The support measures, however, are not expected to commence until 2030.
Significant registration numbers for “e-fuel-only vehicles” are expected from the year 2030, according to the draft bill. Furthermore, it states that due to the ongoing EU legislative process regarding the approval of e-fuel-only vehicles, tax exemption should only become effective from January 1, 2030.
The draft bill asserts that the tax incentives for e-fuel-only vehicles could further accelerate the market uptake of climate-neutral e-fuels. This could complement the increasing electrification of the transport sector and reduce the use of fossil fuels.
In accordance with the principle of “technology openness”, Lindner’s party, the pro-business Free Democrats (FDP), the junior partner in Germany’s three-party coalition, particularly supports an increased use of e-fuels.
The “Growth Initiative” of the German government mentions tax equality for vehicles operated solely with e-fuels with fully electric vehicles, particularly concerning vehicle tax and company car taxation.