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Germany to approve tax incentives for electric cars

The German government is making plans to give the go ahead for new incentives for corporate purchases of electric vehicles on Wednesday with the hope of re-igniting the interest in battery powered cars.

These plans are mainly being discussed to preserve the environment by reducing emissions which are negatively affecting global warming. One of Germany’s strategy to reduce emissions is to have at least 1 million electric vehicles on German roads by 2020 in order to allow the auto industry to meet EU demands to minimise CO2 emissions.

“This is the most ambitious target world-wide,” said Matthias Wissmann, head of the Association of German Automobile Manufacturers. “We’ll only achieve it if we put a lot more electric vehicles on the road.”

The government incentive plan would allow companies to remove a maximum of 90% of the value of vehicles used for business purposes.

The incentive is scheduled to take place in January 2015, but must be approved by Germany’s 16 federal states since its implementation would see taxes lowered at the state level.

The urge to confirm the incentive comes after Germany’s failure to sell the predicted amount of electric vehicles. By the end of November there were only 24,000 electric vehicles in use in Germany.

A commission that is advising the government has warned that Germany may only be able to achieve 50% of its target of 1 million electric-vehicles, should the incentive not be introduced. The commission is predicting 800,000  sales by 2020 should the tax incentives be confirmed.

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