Switzerland To Terminate Tax Exemption For Imported Electric Cars

6 / 4 / 2023

Switzerland's government plans to impose an import tax on electric cars starting next year, ending their exemption from the existing auto tax.

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The move by the Federal Council aims to counter a decline in income from the auto tax and strengthen public finances. Currently,,,,

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the auto tax is a 4% levy on the import value of vehicles, and electric cars have been exempted since 1997 to promote their adoption.

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However, the government now deems the exemption unnecessary due to the significant increase in electric car numbers and narrowing price gap with combustion engine cars.

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Last year's estimated shortfall from the auto tax was 78 million francs (USD 85.7 million), projected to increase to 100-150 million francs this year.

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