From January 1, 2024, the standard tax rate of 4% will apply to electric vehicles. Congress he began amending the Motor Vehicle Tax Ordinance in April to counter the decline in motor vehicle tax revenue and ensure favorable deposits for motor vehicle taxes. National Roads and Aggregate Transportation Fund (NAF). According to the Federal Constitution, the revenue from this tax can only be used for the benefit of the NAF.
According to Congress, the number of EV imports continues to rise and “the situation is changing significantly.” In 2018, around 8,000 EVs were imported into Switzerland, but by 2022 that number will rise to 45,000. And in the first six months of 2023 alone, 30,400 electric vehicles were imported. This was an increase of 66% compared to the first half of 2022. In the first half of 2023, electric vehicles accounted for 23% of total imports.
Specifically, the Bundestag has calculated that the tax loss for 2022 will amount to 78 million Swiss francs (81 million euros). For the current fiscal year, a decline in sales of CHF 100-150 million, or EUR 104-156 million, is expected. If the tax exemption had continued beyond 2023, the cumulative tax shortfall between 2024 and 2030 would have been an estimated CHF2-3 billion.
Taxes are levied on the import price, not the retail price. “According to the industry, the continued reduction in the production costs of electric vehicles will lead to price parity between fossil fuel and electric vehicles after 2025. Therefore, without increasing profit margins in the future as well, , it is possible to achieve profit margins ‘at consumer prices and without state subsidies,’ the press release states. “Congress is of the view that tariff exemptions as an incentive are no longer necessary, given the rapid increase in the share of electric vehicles in total vehicle imports and the convergence of prices.”
But the industry’s initial reaction is in a different direction. Importer association Auto Schweiz described the decision as “a bad day for Swiss electromobility”.
“The worsening framework conditions for EVs are in stark contrast to the CO2 reduction targets for new cars set by the same politicians,” says Peter Grünenfelder, president of Auto Schweiz. “The transport sector needs to reduce its CO2 emissions by 57 per cent by 2040 compared to 1990. This goal is far removed due to anti-consumer decisions at the expense of those who want to buy electric cars from 2024. At the same time, this would send the worst signal at a time when the auto industry is trying to persuade more and more customers to switch to zero-emission vehicles.”
admin.ch, auto.swiss (German)