Effects of the changed automobile tax regulation on electric car owners in Switzerland

Effects of the changed automobile tax regulation on electric car owners in Switzerland

According to a report by amp.20min.ch, the tax exemption for electric cars in Switzerland will be lifted from the beginning of 2024. Previously, electric cars were exempt from the automobile tax, which was introduced in 1997. The new regulation stipulates that owners of electric cars will also have to pay automobile tax from 2024. The decision was made due to the sharp increase in e-car imports and the loss of taxes.

From 2018 to 2022, the number of tax-exempt electric cars imported annually increased almost sixfold from around 8,000 to over 45,000. For 2022, the tax loss amounts to around 78 million francs, and a loss of around 100 to 150 million francs is expected in the current year. The National Roads and Agglomeration Transport Fund (NAF) is missing this money.

The removal of the tax exemption for electric cars will impact the automotive market. It is expected that sales of electric cars could decline as the imposition of car tax increases costs for potential buyers. This could also impact electric car manufacturers and retailers as they may need to make strategic adjustments to maintain demand.

On the other hand, automobile tax revenues for the NAF are expected to increase, which could have a positive impact on the federal budget. The imposition of taxes on the import price of electric cars is expected to bring about a significant change in consumer behavior and an adjustment in the auto industry's pricing strategy.

Overall, the lifting of the tax exemption for electric cars in Switzerland is expected to have a variety of impacts on the automotive market and the financial sector and requires close monitoring and adjustment of strategies from those involved.