Dudenhöfer Sounds Alarm on Electric Company Car Tax Relief: A Time Bomb Ticking?
Alarm sounded by Dudenhöfer over potential explosion in digital service advancement
Get ready to rev up your electric vehicle game because a new initiative is about to send shockwaves through the corporate world – the "Booster Electric Mobility" initiative, folks! If your company invests in an electric vehicle, you'll soon be able to slash 75% of the acquisition costs from your taxes this year. Sounds like a dream come true, right? But, hold onto your horses, folks, because automotive expert, Ferdinand Dudenhöfer, sees a storm brewing on the horizon.
In an interview with "Der Spiegel," Dudenhöfer declared that the government's decision to offer million-dollar depreciation options for electric company cars approved by the federal cabinet is a double-edged sword. "It's gonna give your business a solid boost," Dudenhöfer admitted. But, he cautioned, "Don't ring the victory bell just yet."
Why, you ask? Well, by adopting the depreciation model, Finance Minister Lars Klingbeil is basically kissing those tax dollars goodbye. Yep, you read that right. The money vanishes either way, whether Klingbeil has to dip into his pockets to pay a green premium to private individuals for their electric vehicle purchases or he chooses the depreciation route. Rather unsubtle, if you ask me.
But wait, there's more! The automakers are stepping into a game of Russian roulette that could explode into a "time bomb." You see, the high-value electric vehicles that corporations are mass-leasing to companies now will flood the market in two years, causing used car prices to plummet. This spells deep losses for leasing companies like VW Financial Services, Mercedes-Benz Leasing, or BMW Leasing, as they've overestimated the residual values of these vehicles.
Dudenhöfer isn't done yet, though. He's urging the federal government to extend a helping hand to private buyers of electric vehicles as well, by offering a purchase premium. Unfortunately, the government's "Booster" immediate program only focuses on promoting electric company cars through special depreciation. In the same interview, the automotive expert argued for a new green premium to grow the industry: "2,000 euros from the state would be all it takes."
German electric vehicles are top-tier, and Germany is back in the limelight of e-mobility, Dudenhöfer commended. The surge in registrations in the German market was even the primary reason for the increase in European sales figures. But Dudenhöfer warned that the government's effort should focus on private buyers as well, because the transition to electric vehicles is a team effort.
So, what are the potential issues?
- Ineffective Impact: The German car lobby isn't impressed by the proposed tax relief, believing it's not robust enough to significantly speed up the shift to electric vehicles.
- Economic and Environmental Risks: Delays or dilutions in efforts to reduce emissions and promote electric vehicles could have dire environmental and economic consequences, such as job losses and competitiveness issues.
- Tax Burden and Funding: Making electric cars more affordable may involve hiking taxes on combustion engine cars and revamping company car taxation, which could affect the automotive sector's budget and economic dynamics.
- Dependence on Subsidies: Germany's reliance on subsidies could raise the specter of electric vehicle market collapse when the subsidies are phased out.
While Ferdinand Dudenhöfer's specific warnings about the potential risks and downsides of tax relief for companies purchasing electric vehicles in Germany are scant, these general concerns paint a picture of potential obstacles and challenges associated with the tax relief and the broader electric vehicle transition in Germany. So, grab that helmet and hold on tight – the e-mobility race is about to get bumpy!
Sources: ntv.de, rog
Related Topics:
- Federal Government
- Electric Vehicles
- Electric Mobility
- Subsidies
The Federal Government's focus on electric company cars, while significant, might not be robust enough to expedite the transition to electric vehicles, according to the German car lobby.
Moreover, a possible increase in taxes on combustion engine cars and the revamping of company car taxation could pose challenges to the automotive sector's budget and economic dynamics.
