Tax breaks for EVs under pressure

Electric vehicle tax breaks are coming under pressure across Switzerland as more drivers switch away from petrol and diesel cars.

In Basel-City, the issue has become particularly urgent after electric vehicles exceeded 5% of the canton’s total vehicle fleet - a threshold that could automatically end the current 50% tax reduction for EV owners.

The local Social Democratic Party of Switzerland wants to keep the incentive in place for now., saying the tax break too quickly could slow the transition to cleaner transport.

The debate highlights the increasingly fragmented approach across the cantons. Some, like Zurich, currently exempt electric cars entirely from motor vehicle tax, while others offer temporary discounts or flat-rate systems. 

Meanwhile, federal councillor Albert Rösti is preparing a national proposal that could introduce a tax on electric vehicles from 2030 to compensate for falling fuel-tax revenues used to finance the roads.

That proposal is already proving politically divisive. 

Supporters say EV drivers should contribute fairly to road infrastructure, while critics warn new taxes could undermine electric car adoption.

More from Bitesize News

Download our app

  • Available on the App Store
  • Available on Google Play