Federal Court of Auditors calls for the end of car tax concessions

Dhe Federal Court of Auditors issued an ultimatum to Federal Finance Minister Christian Lindner (FDP) to abolish vehicle tax reductions of around one billion euros. According to information from the editorial network Germany (RND), in a report to the Bundestag, the Federal Court of Auditors demands that the Ministry of Finance initiate a reform “without further delay”.

According to the report, the auditors refer, among other things, to a study commissioned by the Ministry of Finance in 2017 by the scientific research institute at the University of Cologne (FiFo Institute). The study came to the conclusion that a number of tax advantages for agriculture and forestry in the vehicle tax are no longer up to date.

Motor vehicle tax reform “years overdue”

The Treasury Department has not taken any steps to remove it, the report said. A corresponding initiative by the ministry has been “years overdue” and must now take place “without further delay”.

According to the information, the alleged benefits amount to one billion euros. The motor vehicle tax brings in total revenue of around 9.5 billion euros.

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