An analysis by Tax Partner AG, Taxand Switzerland
Starting from 1 January 2024, the Swiss Federal Council plans to remove tax privileges for electric vehicles (EVs) by subjecting them to a 4% automobile tax, aligning them with conventional combustion engine vehicles. This change is being introduced as part of a broader effort to address declining fiscal revenue.
Currently, EVs benefit from tax incentives, including waived import automobile taxes and reductions or waivers of annual motor vehicle taxes by cantons. The move is driven by the significant increase in EV registrations, which rose from 1.8% of new registrations in 2018 to 17.7% in 2022, leading to the reduction in revenue from both automobile and fuel taxes, which finance road and national road networks. The removal of tax privileges on imported vehicles is the initial step in a set of measures planned by the federal government until 2030.
The shift reflects a trend towards ensuring revenue for road infrastructure, as EVs use roads to the same extent as traditional vehicles. Following years of government promotion, the argument for privileging certain vehicles can no longer be justified in the medium term.
Laurent Lattman and Anja Gisler of our Swiss member firm, Taxpartner AG, analyse this shift in greater detail.
Read the full analysis here.
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