Dispute over e-fuels: Minister of Finance tempts with tax advantages gameandnews

The dispute over e-fuels is getting longer: After the FDP was able to push through further approval after 2035 in the EU, Finance Minister Christian Lindner now wants to fight for lower taxation of e-fuel cars. A corresponding concept will be presented soon.

Lindner: Lower taxes on e-fuel cars

Now that the German government and the EU Commission have agreed on a compromise on e-fuels, the next argument about synthetic fuels is imminent. According to plans by Finance Minister Lindner Cars that are fueled with e-fuels are taxed better (Source: daily News). A concept for the reform of motor vehicle tax is to be presented soon.

Lindner emphasizes that one Adjustment of taxation necessary if the fuel is climate-friendly. E-fuels are produced with electricity from renewable energies, water and CO₂ from the air and therefore do not release any additional gases that are harmful to the climate. The FDP chairman is of the opinion that it is important for people and the economy that e-fuels are taxed more cheaply than fossil fuels. But it will “take a while” before cars with e-fuels in the tank are on the road.

It is currently still unclear whether the production of cars powered by e-fuels is actually worthwhile. Critics point out that the Power consumption during generation very high and the production costs of e-fuels could stand in the way of their use.

This electric car wants to clean the atmosphere:

Zem: E-car cleans the atmosphere

Institute for Economic Research: E-fuels are inefficient

The FDP and the car industry are pretty much alone in their assessment of synthetic fuels. Marcel Fratzscher from the German Institute for Economic Research describes e-fuels as “proven to be highly inefficient”. A tax incentive would contradict “any logic of the market economy” (source: Handelsblatt).

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