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Switzerland considers ending EV tax exemption


In Switzerland, electric cars could become more expensive from next year, as the Federal Council initiated an amendment to the Automobile Tax Ordinance.

The aim is to abolish the exemption of EVs from the automobile tax as of 1 January 2024 and to subject electric cars to the normal tax rate of four per cent in the future. In this way, the Federal Council wants to counteract the decline in revenue from the automobile tax and secure the deposits in favour of the National Roads and Agglomeration Transport Fund (NAF). The tax exemption as a promotional instrument is no longer necessary in view of the sharp increase in the share of e-cars in total car imports and the convergence of prices.

The tax is levied on the import price and not on the final sales price of the vehicles. As a result, the final price of a vehicle will increase by less than four per cent, even if the tax is passed on in full to consumers, as the Federal Council explains.

A planned levy on vehicles with alternative drive systems to compensate for falling revenues from the mineral oil tax is not part of this bill. The Federal Council wants this levy to come into force by 2030 at the latest.


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