New emission test leads to higher average motor vehicle tax in Germany

Automotive Industry

Source: Clean Energy Wire, 2020-08-25

The implementation of new emissions tests for cars has led to a large increase in average vehicle tax for newly registered vehicles in Germany, the RedaktionsNetzwerk Deutschland (RND) reports. According to a report from the finance ministry to the Bundestag, the introduction of the Worldwide Harmonized Light Vehicles Test Procedure (WLTP) in September 2018 led to a 40% rise in average vehicle tax for newly registered vehicles, from €150 to €210. Overall vehicle tax revenues increased by €500m from 2017 to 2019. Vehicle tax payments in Germany vary according to emissions and engine size. According to ministry statistics, 98% of new registrations between September 2018 and September 2019 showed nominally higher exhaust emission values than under the old NEDC process. In half of the new registrations, the deviations were in the range of up to 20%. "The principles of motor vehicle tax assessment can help to promote interest in potentially low-emission passenger cars," the report states. Figures show that vehicles in Germany are getting greener.

The old NEDC testing process was reformed after it largely failed to pick up overstated fuel consumption and emission claims by manufacturers. The WLTP system is considered to be much more robust and a better reflection of actual consumption and emissions. It was introduced in the wake of the diesel emissions scandal and to help enforce EU emission regulations. It will also help to administer an emission-dependent sliding scale of tax payments, which will be introduced in 2021. Manufacturers, however, blame the switch to WLTP for a drop in vehicle sales

Read here our paper on WLTP, RDE and automotive emissions.


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