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HOW TO INCENTIVISE E-MOBILITY

Posted on 22 Apr 2019
HOW TO INCENTIVISE E-MOBILITY

With E-Mobility on the rise, the governments of many countries are looking for ways in which they can support this trend. They are setting rules that will make purchasing electric cars cheaper or favour their operation over conventional vehicles.


The option is to offer direct purchase subsidies. A second is to introduce concessions to cut down on auxiliary expenses. This includes the reduction or waiving of taxes, tolls and parking charges. Various non-financial benefits are also being deployed, such as the chance to use taxi and bus lanes in cities. As they say, different strokes for different folks – every country has its own way of approaching E-Mobility support.


These approaches differ not only within Europe, but across continents. The US, for example, introduced credit-based tax relief in 2009. The amounts differ depending on the type of vehicle and can be as much as USD 7,500. This credit is then deducted from the applicant’s income tax. The plan is that, once an electric-car manufacturer hits sale of 200,000 units in the US, the support for purchases of that producer’s vehicles will be phased out over the course of the following year.


Did you know that in the Czech Republic, electric-car owners are exempt from road tax and, in Prague, can park for free in the blue zones reserved for residents. The government also introduced its fourth subsidy scheme for businesses and authorities in 2016, qualifying companies – depending on their size – for up to 75% subsidies when they buy electric vehicles. Municipalities can purchase electric vehicles with EUR 10,000. 50% of EV sales in 2017-2018 were realised due to this subsidy scheme.


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