Country:Germany
Year:1997
Policy status:Ended
Jurisdiction:National
Date Effective:1997
Policy Type:Economic Instruments>Fiscal/financial incentives>Tax relief, Economic Instruments>Fiscal/financial incentives>Taxes
Policy Target:Transport>Fuel, Transport>Vehicle type>Heavy-duty vehicles, Transport>Vehicle type>Light-duty vehicles, Transport>Vehicle type>Passenger vehicles
Description:In March 1997, the German Parliament adopted an amendment to the Motor Vehicle Tax Act which took effect in July 1997. The amendment allowed for temporary exemptions of the annual motor-vehicle tax for low pollutant emissions cars (cars that meet the limit values laid down in the European Commissions proposal for the follow up Directive 94/12 EC) and higher taxes for some high emissions cars. The tax rate was also reduced for cars that had a very low level of specific consumption. Particularly energy efficient and low pollutant cars benefited from tax rebates: so called "5-litre cars" (120 g CO2/km) enjoyed a non-recurring tax rebate of DM 500 upon the date of first registration. The tax rebate for so-called "3-litre cars" (90 g/CO2/km) was DM 1 000, irrespective of the date of first registration. The amended Act was subject to renewal five years after its implementation.

Last modified: Mon, 09 Jul 2012 15:26:35 CEST