The German vehicle importers’ trade association, Verband der Internationalen Kraftfahrzeugherstelle (VDIK), has called for the introduction of a new CO2-based tax system as soon as possible.
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It recommended that the government adopt the proposal of the individual states to hand over the tax to the state, to ensure that the tax system is as fair and balanced as possible. It said that if the government could quickly agree the conditions for the new tax then the industry could get on with renewing the car parc.
VDIK president Volker Langer said that government now has the reins. “It must end the on-going discussion between the national government and the states.”
Langer noted that a new tax had been promised for December 2007 and that consumer confidence regarding new car purchases is suffering because of the uncertainty. He said that resolving the issue quickly could spur customers to start buying more fuel-efficient models, rather than holding on to their higher polluting models.
This would also enhance the competitiveness of the German automotive industry in terms of addressing climate change.
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By GlobalData
