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New emission test leads to higher average motor vehicle tax in Germany

26 August 2020
Consumers
energynomics

The implementation of new emissions tests for cars has led to a large increase in average vehicle tax for newly registered vehicles in Germany, the RedaktionsNetzwerk Deutschland (RND) reports. According to a report from the finance ministry to the Bundestag, the introduction of the Worldwide Harmonized Light Vehicles Test Procedure (WLTP) in September 2018 led to a 40 percent rise in average vehicle tax for newly registered vehicles, from 150 euros to 210 euros, according to CLEW.

Overall, vehicle tax revenues increased by 500 million euros from 2017 to 2019. Vehicle tax payments in Germany vary according to emissions and engine size. According to ministry statistics, 98 percent of new registrations between September 2018 and September 2019 showed nominally higher exhaust emission values than under the old NEDC process. In half of the new registrations, the deviations were in the range of up to 20 percent. “The principles of motor vehicle tax assessment can help to promote interest in potentially low-emission passenger cars,” the report states. Figures show that vehicles in Germany are getting greener.

The old NEDC testing process was reformed after it largely failed to pick up overstated fuel consumption and emission claims by manufacturers. The WLTP system is considered to be much more robust and a better reflection of actual consumption and emissions. Manufacturers, however, blame the switch to WLTP for a drop in vehicle sales.

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