Fleet News

Germans scrap new car tax proposals

THE German company car market is set for growth after plans for a controversial tax on drivers were scrapped.

Automotive experts have welcomed the move and claim that now uncertainty has been removed from the market, fleet sales in the country will pick up.

Under the proposals it was feared that the amount of tax paid by some drivers would have increased by as much as 50%. Monthly taxes on corporate cars would have risen from 1% to 1.5% of the list price.

It was estimated that the new law would have cost a driver an additional 100 Euro per month on a 40,000 Euro vehicle. He said: 'The planned increase in the tax on company cars has now found its way into the rubbish bin, where it belongs. This is due in no small measure to our information campaign and the clear position taken by the opposition. Purchases that were postponed can now be made.'

Gottschalk said the range of new models offered to consumers was becoming increasingly more attractive. 'In line with the increasing number and revitalisation of brands, we can expect a battle of new cars in the next few years,' he said.

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