November 22, 2024
German finance minister to use tax to push synthetic ‘green’ fuels #NewsGerman

German finance minister to use tax to push synthetic ‘green’ fuels #NewsGerman

CashNews.co

Christian Lindner, Germany's Minister of Finance, speaks at the Entrepreneurs' Day 2024 with the motto "We act for Germany" to mark the 75th anniversary of the Federal Association of Wholesale, Foreign Trade and Services (BGA). Bernd von Jutrczenka/dpa

Christian Lindner, Germany’s Minister of Finance, speaks at the Entrepreneurs’ Day 2024 with the motto “We act for Germany” to mark the 75th anniversary of the Federal Association of Wholesale, Foreign Trade and Services (BGA). Bernd von Jutrczenka/dpa

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.