Switzerland removes tax breaks for EVs

The Swiss Federal Council has announced that it's removing the 4% import tax break on EVs, which was in place since 1997. The reason for the decision stems from the rampant adoption rate of EVs in the country and now 23% of all imported cars are EVs. The drop in average EV prices is another reason cited by the Swiss government.

The Swiss government is also looking to improve the public transport and highway system, so the removal of the 4% credit will raise some additional funds for projects. The government estimates an additional revenue of at least CHF 2 billion to CHF 3 billion per year.

The annual imports of EVs between 2018 and 2022 have increased six times and peaked at 45,000 units last year.

However, Swiss car dealers say they oppose the deal from a financial standpoint and cast doubt on the Federal Council's efforts toward reducing CO2 emissions.

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